Stocks markets surge as Trump calls off strikes on Iran, touts peace deal

Global stock markets experienced a significant rally on Thursday and Friday, fueled by President Donald Trump's announcement that the United States had called off planned military strikes against Iran. The news, coupled with Trump's assertion that a peace deal with Tehran is imminent, significantly eased geopolitical tensions and boosted investor confidence.

“

We just made a great settlement of the war with Iran… subject to finalisation of documents.

Wall Street closed sharply higher on Thursday, with the S&P 500 index jumping nearly 1.8 percent, marking its largest single-day gain since April. The tech-heavy Nasdaq Composite climbed 2.5 percent, and the Dow Jones Industrial Average rose about 1.9 percent. This positive momentum carried over into Asian trading on Friday.

Markets across the Asia-Pacific region saw substantial gains. South Korea's Kospi, already the best-performing major index this year, surged over 8 percent in morning trading. Japan's Nikkei 225 rose as much as 4 percent, Taiwan's TAIEX gained about 2.4 percent, Australia's ASX 200 climbed 1.8 percent, and Hong Kong's Hang Seng Index was up more than 1 percent.

“

For the rally to be sustained, investors will want to not only see the actual deal being signed, but a complete reopening of the Strait of Hormuz.

The easing of geopolitical risk also impacted oil prices, with Brent crude falling about 1 percent to below $89.50 a barrel. Investors are now looking for confirmation of a deal and a complete reopening of the Strait of Hormuz for the rally to be sustained. Analysts suggest the market rebound reflects genuine dip-buying interest and a healthy reset after a rapid advance, potentially extending the rally's longevity.

“

The broader read on today’s Asian follow-through is that dip-buying interest remains genuine.