Asian equity markets opened higher on Wednesday, July 1, buoyed by a combination of geopolitical relief and continued strength in the technology sector.
Japan's benchmark Nikkei 225 index climbed 1.79%, while the broader Topix index gained 1.07%.
42%, indicating a divergence in investor appetite between large-cap and smaller companies.
In South Korea, the Kospi advanced 1.52%, though the small-cap Kosdaq index slipped 0.42%, indicating a divergence in investor appetite between large-cap and smaller companies.
The positive sentiment follows reports of progress in diplomatic efforts between the United States and Iran.
Investors have responded favorably to signs that peace negotiations are advancing, reducing fears of supply chain disruptions and energy market volatility.
This geopolitical optimism has been a recurring driver for Asian markets in recent sessions, as traders weigh the potential for de-escalation in the Middle East.