Asian equities staged a broad-based rally on Monday, led by Japan’s Nikkei 225, which climbed more than 5% to a new record high.
The surge followed reports that the United States and Iran have reached a peace agreement aimed at ending nearly four months of conflict, triggering a rapid unwinding of geopolitical risk premiums across global markets.
The market reaction was swift and decisive.
Investors moved to price in a significant de-escalation of tensions in the Middle East, with the Nikkei’s gains reflecting renewed confidence in regional stability and supply chain security.
The rally extended beyond Japan, with other major Asian indices posting solid gains as the prospect of a diplomatic resolution lifted sentiment across the region.
The peace deal, which reportedly aims to conclude the conflict that has disrupted shipping and energy flows, has immediate implications for global trade.