Key Takeaways

• Record highs across Asia: Nikkei 225 jumped nearly 3% to an all-time high of 66,449.48; KOSPI surged 3.4% to a record 8,458.25.
• Broad rally: Hang Seng rose 1%, Hang Seng TECH climbed 1.7%, ASX 200 advanced 1.3%, and Singapore’s STI gained 1%.
• 60-day ceasefire extension: Reports said Washington and Tehran reached a draft agreement to extend the ceasefire and continue nuclear and regional security talks.
• Not yet finalized: The proposed deal still needs Trump’s approval; Iranian media said the framework hasn’t been signed off.
• AI and tech lead gains: Asian tech shares tracked Wall Street’s S&P 500 and Nasdaq, which both closed at record highs overnight.
• Oil falls for second day: Brent crude headed for its steepest weekly decline in nearly two months.
• PCE inflation concern: Thursday’s data showed the Fed’s preferred inflation gauge rose at its fastest annual pace in three years in April.
• China cautious: Shanghai Composite edged down 0.4%; CSI 300 flat.
• Japan data barrage: Tokyo core inflation slowed to 1.3% in May — below the BOJ’s 2% target.
• Japan factory output rebounds: Industrial production rose 0.9% in April, beating expectations despite Middle East supply chain concerns.
• Japan retail sales strong: Rose 2.1% year-on-year in April, topping the 1.4% forecast.
• India unchanged: Nifty 50 was largely flat.

Asian stock markets rose sharply on Friday, led by artificial intelligence-linked shares tracking Wall Street’s record highs, while reports that the United States and Iran were close to extending their ceasefire also boosted risk appetite.

Asian technology shares took cues from Wall Street, where the S&P 500 and Nasdaq Composite posted record closing highs overnight, driven by strong gains in AI-linked companies.

U.S. stock index futures were little changed during Asian hours.

Nikkei and KOSPI Hit Fresh Peaks on Tech Rally, Iran Peace Hopes

Japan’s Nikkei 225 jumped nearly 3% to a fresh all-time high of 66,449.48 points, while the broader TOPIX index rose 2%.

South Korea’s KOSPI surged 3.4% to new record levels of 8,458.25 points, powered by strong advances in semiconductor and artificial intelligence-linked shares.

Hong Kong’s Hang Seng index rose 1%, with the Hang Seng TECH sub-index climbing 1.7%.

Investor sentiment improved after reports said Washington and Tehran had reached a draft agreement to extend their ceasefire for another 60 days and continue negotiations over Iran’s nuclear program and regional security issues.

The proposed agreement still requires approval from U.S. President Donald Trump, while Iranian media said the framework had not yet been finalized.

The reports helped calm some fears of further tensions surrounding the Strait of Hormuz — a key route for global oil supplies.

Oil prices fell for a second straight session, with Brent crude heading for its steepest weekly decline in nearly two months.

Still, investors remained cautious after U.S. inflation data showed persistent price pressures. Data released on Thursday showed the personal consumption expenditures price index — the Federal Reserve’s preferred inflation measure — rose at its fastest annual pace in three years in April.

Japan Data Barrage in Focus

Elsewhere in Asia, China’s Shanghai Composite edged down 0.4%, while the blue-chip Shanghai Shenzhen CSI 300 index traded flat.

Singapore’s Straits Times Index rose 1%, while India’s Nifty 50 was largely unchanged.

Australia’s S&P/ASX 200 index climbed 1.3%.

In Japan, data showed Tokyo core inflation slowed to 1.3% in May — remaining below the Bank of Japan’s 2% target and reinforcing expectations that the central bank will proceed cautiously with further policy normalization.

Separate data showed that Japan’s factory output rose 0.9% in April from the previous month, rebounding unexpectedly despite concerns over rising energy costs and supply-chain disruptions linked to Middle East tensions.

Retail sales rose 2.1% in April from a year earlier, matching March’s pace and topping market forecasts for 1.4% growth.