Asian Stocks Rise as Markets Look Past U.S.-Iran Tensions — Update

By Kimberley Kao

Asian stock markets rose Friday as fears about a full-blown war in Iran eased.

President Trump signaled that Iran was open to ending the tit-for-tat fighting that erupted between the two countries this week, after earlier saying that the ceasefire with Iran was over.

There are "expectations of limited military attacks between the U.S. and Iran," ANZ Research analysts said in a report.

"Despite the U.S. ramping up attacks on military sites in Iran, the market drew some reassurance from the Trump administration's decision to avoid targeting Iranian energy infrastructure," the analysts added.

South Korea's Kospi rose more than 5% before ending 2.5% higher. Investors are hoping that SK Hynix will make a strong U.S. debut Friday, said Ipek Ozkardeskaya, senior analyst at Swissquote.

Japan's Nikkei Stock Average ended 1.2% higher, with SoftBank Group rising 11%. Hong Kong's Hang Seng Index closed 0.6% higher, recording its best weekly gain since October 2025.

There is room for further gains for Chinese technology companies, given the valuation gap with U.S. firms, Ozkardeskaya said.

Taiwan Stock Exchange said markets are closed due to a typhoon.

Markets are cautiously optimistic, shrugging off Middle East tensions as oil prices eased, which reduced inflation fears, supported risk assets and only weighed slightly on the U.S. dollar, said OCBC Group Research strategists in a note.

Front-month WTI crude oil futures were last 0.7% lower at $71.55 a barrel, while front-month Brent was down 0.7% at $75.80 a barrel, taking weekly gains to around 5%.

This rise is unlikely to materially be a drag on equities, said Daniel Tan, director at Grasshopper Asset Management.

"The escalation in U.S.-Iran tensions represents a possible downside risk, but without a much larger increase in energy prices, the impact on global equity markets should be less material," Tan added.

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

July 10, 2026 04:29 ET (08:29 GMT)