Asian equity markets opened higher on Monday, driven by renewed optimism surrounding diplomatic efforts between the United States and Iran.
Investors are responding positively to reports that the two governments intend to formalize peace talks, a development that has significantly reduced geopolitical risk premiums across global asset classes.
The rally was broad-based across the region, with Japanese and South Korean equities posting the strongest gains.
This regional strength follows a decisive move in Wall Street equities on Friday, where the prospect of a formal agreement injected a wave of relief into risk assets.
The S&P 500 rebounded from earlier lows to close above 7,000 for the first time since the conflict began, signaling that investors are beginning to price in a de-escalation scenario.
The shift in sentiment marks a notable turn from the protracted uncertainty that has weighed on markets during the U.S.-Iran conflict.