APAC Markets Rally as U.S.-Iran Diplomatic Progress Sparks Optimism; Nikkei Hits Record High

Asian markets trended higher on Thursday, buoyed by growing hopes for an end to the Iran conflict. Japan’s Nikkei 225 hit a fresh intraday record as global investors reacted positively to reports of diplomatic breakthroughs.

According to state media, negotiators from the U.S. and Iran have made significant progress in their latest round of talks, reportedly nearing a framework agreement to end hostilities. This de-escalation of geopolitical risk has provided a massive confidence boost to risk assets.

Japan: Tech and Foreign Inflow Drive Historic Gains

The Nikkei 225 opened high and sustained its momentum, surging 2.43% to close at a record 59,546.85. The rally was primarily spearheaded by technology and consumer cyclical stocks. The broader TOPIX index also gained 1.33%.

Beyond cooling Middle East tensions, record-breaking foreign capital inflows are fueling the bull run. Data from Japan’s Ministry of Finance revealed that foreign investors net-purchased 3.94 trillion yen in Japanese equities last week (April 5–10)—the highest weekly amount since records began in 2005. Year-to-date, cumulative foreign net buying has reached 4.78 trillion yen.

Regional Performance: South Korea Nears Peak

• South Korea: The KOSPI rallied nearly 2% to 6,210, inching closer to its February record of 6,307. The KOSDAQ rose 1.10%.
• Chip Giants: SK Hynix added 1.41% to reach a new all-time high, while Samsung Electronics climbed 2.61%, nearing its own record peak.
• Australia: The S&P/ASX 200 bucked the trend, slipping 0.25%. March labor data showed a 1.4% year-over-year increase in employment, while the unemployment rate held steady at 4.3%.
• Commodities: Oil prices hovered in a tight range during Asian trading. Brent crude traded near $95.15 per barrel, while WTI stood at $91.53.

U.S. Futures Outlook

On Wednesday, the S&P 500 closed above the 7,000 psychological milestone for the first time in history, gaining 0.8%. The Nasdaq surged 1.59%, marking its 11th consecutive winning session and closing above 24,000.

As of Thursday morning, U.S. index futures were largely stable. S&P 500 and Nasdaq 100 futures remained flat, while Dow Jones Industrial Average futures edged up 45 points (+0.1%).