Australian stocks climb to one-week high
Australian shares hit a one-week high on Friday, with gold and mining stock leading gains as easing US-Iran tensions boosted risk appetite after US President Donald Trump called off planned strikes on Iran.
The S&P/ASX 200 index rose 1.8 percent to 8,789.10 by 0032 GMT, its highest level since June 3.
The benchmark was also set to log its best week since mid-April.
It fell 0.2 percent on Thursday.
Investors capped out a week marked by swings in Middle East tensions, with sentiment improving overnight after Trump said a peace deal with Iran could be signed as soon as this weekend, potentially reopening the Strait of Hormuz, although Tehran said no final decision had been made.
Markets remain focused on developments, as any disruption to oil supplies could rekindle global inflation concerns.
However, in Australia, softer monthly jobs and inflation prints strengthened expectations that the Reserve Bank of Australia will leave rates unchanged at its meeting on Tuesday after three rate hikes earlier this year.
Gold stocks led gains and jumped as much as 6.3 percent, on track for their best session in two months.
Evolution Mining and Northern Star Resources added 6.3 percent and 4.7 percent, respectively. Following suit, miners advanced 3.8 percent, on track to log its best day since April 8. Bellwethers BHP Group, Rio Tinto and Fortescue gained between 1.7 percent and 2.3 percent.
Financials rose 1.8 percent, with the “Big Four” banks up between 1.1 percent and 1.7 percent. Technology stocks tracked their overseas peers higher and climbed 2.1 percent.
European shares rally as oil falls
European shares rallied at open on Friday, with all major indexes gaining more than 1 percent, as oil prices slipped on hopes for a diplomatic breakthrough in the Middle East.
Brent crude fell more than 2 percent, extending the previous session’s losses, after US President Donald Trump cancelled plans to strike Iran, reducing fears of an escalation of hostilities.
The pan-European STOXX 600 index advanced 1.2 percent to 628.81 points by 0720 GMT and was set for a 1 percent weekly gain.
All sectors except energy rose.
The benchmark snapped a four-day losing streak on Thursday, as investors digested the European Central Bank’s rate hike and largely looked past escalating rhetoric around the US-Iran conflict.
Travel and leisure stocks led sectoral gains with a 3.4 percent rise, with Lufthansa and Air France jumping 4.6 percent and 5.7 percent, respectively.
Banks gained 2.3 percent, with Barclays and Standard Chartered climbing more than 2 percent.
AI equipment makers Legrand and Schneider Electric climbed 1 percent and 1.4 percent, respectively.
South Korean stocks jump 8pc
South Korean shares jumped 8 percent on Friday, as Middle East peace hopes rose after US President Donald Trump said a deal could be reached with Iran as early as this weekend.
The benchmark KOSPI was up 620.10 points, or 7.99 percent, at 8,384.05, as of 0108 GMT.
The KOSPI has risen 2.6 percent this week, after falling 3.7 percent last week.
Trading has been volatile this week, with the benchmark stock index triggering “sidecar” trading curbs in four sessions, including on Friday, and activating circuit breakers earlier this week for the third time this year and the ninth in history.
Trump on Thursday said the United States and Iran could sign a peace deal as soon as this weekend that would reopen the Strait of Hormuz to shipping. However, Iran said it had not reached a final decision on an agreement.
Among index heavyweights, chipmaker Samsung Electronics rose 12.21 percent, while peer SK Hynix gained 8.85 percent.
Battery maker LG Energy Solution climbed 6.11 percent. Hyundai Motor and sister automaker Kia Corp were up 6.03 percent and up 4.81 percent, respectively. Steelmaker POSCO Holdings added 6.84 percent, while drugmaker Samsung BioLogics rose 1.01 percent. Of the total 918 traded issues, 797 shares advanced, while 102 declined.
Foreigners were net buyers of shares worth 979.4 billion won ($644.98 million).
Japan’s Nikkei jumps on renewed hopes
Japan’s Nikkei share average jumped more than 4 percent on Friday as investors scooped up stocks on renewed hopes for peace in the Middle East after US President Donald Trump said he had cancelled planned strikes against Iran.
The Nikkei was up 3.8 percent at 66,658.59 as of 0217 GMT after rising more than 4.4 percent earlier in the session.
The index gave up some of its gains after the special quotation prices used to set the values of index options and futures were set.
The broader Topix gained 2.06 percent to 3,909.14.
President Donald Trump on Thursday said the United States and Iran could sign a peace deal as soon as this weekend that would reopen the Strait of Hormuz to shipping, but Iran countered that it had not reached a final decision on an agreement.
Indian stocks set to open higher
Indian shares are set to open higher on Friday, tracking gains in other Asian markets, as oil prices fell after U.S. President Donald Trump cancelled plans strike Iran citing progress in talks.
GIFT Nifty futures were trading at 23,483 as of 7:47 a.m. IST, indicating that the benchmark Nifty 50 would open 1.4 percent above Thursday’s close of 23,161.6.
Other Asian stock markets jumped 3.1 percent. Brent crude futures slipped below $90 a barrel, tempering inflation fears.
China and Hong Kong shares fall
China and Hong Kong stocks ended lower on Thursday, led by declines in tech shares tracking weakness in regional peers, while a fresh escalation in Middle East tensions also weighed on investor sentiment.
The United States launched new strikes against multiple targets overnight in Iran, and President Donald Trump vowed even more attacks if no peace deal is secured.
At the market close, the benchmark Shanghai Composite index declined 0.2 percent, while the blue-chip CSI300 index dropped 0.6 percent.