Stock market today: Japan’s Nikkei and South Korea’s Kospi surge to record highs as Wall Street futures rally on U.S.-Iran deal
Japan’s Nikkei 225 led gains, climbing nearly 2 percent to a record high of 71,477 points, while the Topix also advanced 2 percent to an all-time peak
Most Asian stock markets advanced on Thursday, with Japanese and South Korean stocks reaching record highs after the United States and Iran agreed on a framework deal aimed at ending their nearly four-month conflict.
In contrast, Hong Kong stocks underperformed, falling to their lowest level in 11 months as declines in major technology shares and concerns over Beijing’s tighter scrutiny of cross-border investments weighed on sentiment.
Elsewhere, regional markets largely shrugged off losses on Wall Street, where stocks retreated overnight after the Federal Reserve signaled that an interest rate increase later this year remains a possibility.
Investor sentiment improves on U.S.-Iran deal
In the U.S. stock market, futures pointed higher after reports indicated that U.S. President Donald Trump and Iran’s president had remotely signed a memorandum of understanding aimed at ending the conflict between the two countries. S&P 500 futures rose 0.72 percent, while Nasdaq futures gained 1.18 percent.
The preliminary deal is expected to halt hostilities in the Middle East and pave the way for the reopening of the Strait of Hormuz. However, Trump cautioned on Wednesday that Washington could resume military action against Iran if Tehran fails to uphold its commitments under the agreement.
Both sides are set to enter a 60-day negotiation period to work toward a broader accord, with Iran’s nuclear program expected to be a central issue in the talks.
Japan’s Nikkei 225 leads gains
In the Asian stock market, Japan’s Nikkei 225 led gains, climbing nearly 2 percent to a record high of 71,477 points, while the Topix also advanced 2 percent to an all-time peak.
In South Korea, the Kospi rose 1.56 percent to a record 9,002.17 points. The rally was driven primarily by semiconductor and artificial intelligence-related shares, as investors continued to bet that strong AI demand will support robust earnings growth across the technology sector. In South Korea, SK Hynix jumped 5.95 percent to a record high after announcing that it had delivered samples of a next-generation memory chip to key customers.
Elsewhere in the region, performance was more mixed. Australia’s S&P/ASX 200 fell 0.36 percent, while Singapore’s Straits Times Index edged up 0.19 percent. India’s Nifty 50 futures gained 0.53 percent, supported by optimism that lower oil prices could help strengthen the country’s economic recovery.
In the Chinese stock market, the CSI 300 rose 0.59 percent, while the Shanghai Composite slipped 0.06 percent.
Hong Kong’s Hang Seng Index significantly underperformed regional markets, falling 1.82 percent to its lowest level since July 2025. The decline was driven largely by weakness in major internet and technology stocks, as investors increasingly rotated into companies with greater exposure to artificial intelligence and semiconductor growth themes. Chipmakers in Japan, South Korea and Taiwan have attracted strong inflows in recent weeks, drawing capital away from Hong Kong’s tech sector.
Market sentiment was also weighed down by concerns over Beijing’s tighter scrutiny of mainland investments into Hong Kong. The measures have raised fears of reduced capital inflows from affluent mainland investors, a key source of support for the city’s financial markets.
Investors await Bank of England rate decision
Investors are now monitoring the outcome of the Bank of England’s policy meeting on Thursday. Like the U.S. Federal Reserve, the central bank is widely expected to leave interest rates unchanged, shifting attention to policymakers’ guidance on the economic outlook and future rate path.
In currency markets, the dollar edged down 0.03 percent against the Japanese yen to 160.61, after reaching 160.79 overnight, its strongest level since July 2024. Meanwhile, the dollar index, which tracks the U.S. currency against a basket of major peers, gained 0.17 percent to 100.26. The euro gained 0.13 percent to trade at $1.1517.
Falling oil prices have helped ease concerns about a potential global economic slowdown, particularly in energy-importing regions such as Europe. Sentiment was further supported after the International Energy Agency said on Wednesday that the global oil market could move into a substantial supply surplus by 2027 following the recovery from disruptions caused by the closure of the Strait of Hormuz.
In commodities, spot gold traded 1.52 percent higher at $4,322.47 an ounce.
