Asian equity markets opened the week on a positive note, driven by reports of progress in diplomatic negotiations between the United States and Iran.
The development has helped ease geopolitical tensions that have weighed on global risk sentiment, providing a tailwind for regional indices as traders assessed the potential for sustained de-escalation.
European stocks are expected to follow suit, with markets poised to open higher on Tuesday.
The optimistic tone from Asia is likely to carry over into European trading sessions, as investors digest the latest diplomatic signals alongside broader macroeconomic developments.
The shift in sentiment reflects a growing belief that the immediate risk of escalation in the Middle East has receded, allowing capital to flow back into risk assets.
In other market-moving news, Australia’s 2026 federal budget, unveiled earlier this week, has triggered significant activity across various sectors.