Asian equity markets staged a powerful rally on Monday, driven by optimism surrounding a reported peace agreement between the United States and Iran.
Japan’s Nikkei 225 led the charge, climbing more than 5% to reach a new record high, signaling a sharp shift in investor sentiment across the region.
The surge reflects a rapid repricing of geopolitical risk premiums that have weighed on global markets.
With the prospect of de-escalation in the Middle East, investors moved quickly to buy into equities, particularly in Asia, where exposure to energy supply chains and trade routes is significant.
The broad-based nature of the rally suggests that the market is interpreting the diplomatic development as a structural improvement in the global risk environment rather than a fleeting headline.
This move follows a period of heightened volatility linked to tensions between the two nations.