Asian equity markets posted broad gains on Monday, buoyed by reports of progress in diplomatic negotiations between the United States and Iran.
The positive sentiment helped lift regional shares, with MSCI’s broadest index of Asia-Pacific stocks outside Japan climbing 1.0%.
In contrast, Chinese blue-chip indices remained flat, reflecting a more cautious stance among mainland investors.
The rally comes as traders weigh the potential for reduced geopolitical risk against persistent macroeconomic headwinds.
While the prospect of a US-Iran agreement has eased concerns over supply chain disruptions and energy market volatility, hawkish signals from the Federal Reserve continue to cap upside momentum.
Treasury yields remained under pressure from US monetary policy cues, limiting the breadth of the equity advance.