FX.co ★ Asian Stocks Set for Strong Weekly Advance

Asian equity markets were poised to end the week with strong gains, buoyed by optimism that the US–Iran ceasefire will hold and potentially lead to a reopening of the Strait of Hormuz. The prospect of improved shipping conditions has lifted risk appetite across global markets, easing concerns about inflationary pressures and further interest rate hikes. Attention is now turning to diplomatic talks in Islamabad this weekend, where Vice President JD Vance will head a US delegation in negotiations with Iranian officials. Nonetheless, caution remained amid ongoing Israeli strikes in Lebanon and continued restrictions in the Strait of Hormuz, both of which could complicate the talks. Japan’s Nikkei 225 and South Korea’s KOSPI Composite were on track to gain more than 7% and 9%, respectively, for the week, while benchmark indices in Australia, China, and Hong Kong were also set for robust weekly advances.