Asian equity markets opened the week with renewed investor confidence after signs of progress in the US-Iran conflict reduced immediate concerns around energy supply, trade disruption and regional instability. The reported agreement to reopen the Strait of Hormuz and extend a ceasefire helped shift market attention back towards growth sectors, particularly technology, semiconductors and artificial intelligence infrastructure.
The Strait of Hormuz has been a central source of risk during the conflict. Any sustained reopening of the waterway would reduce pressure on oil supply chains and improve visibility for companies exposed to transport costs, fuel availability and wider inflationary pressures. That change in risk perception was reflected quickly across regional markets, with Japanese and South Korean equities drawing strong buying interest.
Japan was at the centre of the rally. The Nikkei 225 moved sharply higher to a record level, while the broader Topix also advanced, signalling that investor appetite extended beyond a narrow group of headline stocks. The strongest demand was concentrated in companies linked to semiconductors, artificial intelligence, data centres and other strategic technology supply chains.
Technology-related buying was also visible in South Korea, where the Kospi rose strongly as investors returned to major names associated with AI infrastructure. Samsung Electronics and SK Hynix both benefited from the renewed focus on chips and data-centre demand.
The fall in oil prices also helped improve sentiment. Brent crude moved lower after the announcement, reducing some of the cost concerns that had weighed on transport, aviation and consumer-facing sectors. Japanese airlines were among the beneficiaries, as investors assessed the potential for lower jet fuel pressure and a more stable operating environment.
Fidelity Asian Values Plc (LON:FAS) provides shareholders with a differentiated equity exposure to Asian Markets. Asia is the world’s fastest-growing economic region and the trust looks to capitalise on this by finding good businesses, run by good people and buying them at a good price.
