Asian stock markets experienced significant gains on Friday, driven by optimism surrounding a potential United States-Iran deal and strong guidance from Nvidia regarding booming demand for data centers amid the rapid adoption of agentic Artificial Intelligence (AI) technologies [1]. As of the latest update, the Nikkei 225 rose by 2.8% to approximately 63,400, the Shanghai index climbed to 4,110, the Hang Seng advanced 1.2% to near 25,700, and the Nifty 50 increased by 0.5% to around 23,780 [1].
The Iranian Labour News Agency (ILNA) reported that a final draft agreement between the US and Iran has been reached with mediation from Pakistan, and a deal could be announced within the next few hours. However, despite the positive headlines, some investor skepticism remains due to Iran's insistence on maintaining uranium stockpiles and managing the toll system over the Strait of Hormuz [1].
On the corporate front, Nvidia's CEO Jensen Huang highlighted the arrival of agentic AI and emphasized that the company's AI factory buildout is 'accelerating at extraordinary speed.' Huang also stated that 'Nvidia is the only platform that runs every frontier AI model,' referencing partnerships with Anthropic, OpenAI, SpaceXAI, Meta, and Google’s Gemini [1].
Looking ahead, market participants are closely monitoring the Federal Reserve's monetary policy outlook as a potential trigger for further movements in Asian stock markets. According to the CME FedWatch tool, there is a 50.8% probability that the Fed will maintain current benchmark lending rates, while the odds of at least one interest rate hike this year stand at 48.1% [1].
CONCLUSION
Asian equities rallied on Friday, buoyed by hopes for a US-Iran deal and Nvidia's strong AI-driven outlook. While optimism prevails, some caution remains regarding the finalization of the US-Iran agreement and future Federal Reserve policy decisions. Market sentiment is currently positive, with high impact reflected across major Asian indices.