Asia-Pacific markets opened higher on Friday, buoyed by investor optimism surrounding U.S.-Iran diplomatic efforts aimed at achieving a peace deal in the Middle East. Oil prices fell in U.S. trading amid hopes for a resolution, though Iran’s intention to retain its enriched uranium stockpile could complicate negotiations with Washington. In Japan, the Nikkei 225 surged 1.36%, and the Topix gained 0.55%, supported by easing core inflation, which dropped to 1.4%—lower than the expected 1.7%—diminishing prospects for an early rate hike by the Bank of Japan.

South Korea’s Kospi rose 0.52%, while the Kosdaq Index saw a notable jump of over 3%. Australia’s S&P/ASX 200 increased by 0.5%, and Hong Kong’s Hang Seng index futures indicated further gains. On Wall Street, the Dow Jones Industrial Average reached a record close, gaining 276.31 points to finish at 50,285.66.

The key takeaway for market professionals is the potential volatility in oil prices and related sectors, depending on the progress of U.S.-Iran negotiations, alongside implications for monetary policy in Japan following the inflation data.

Source: cnbc.com