Asian stocks are expected to open higher on Friday, following a peace deal between the US and Iran. This agreement has fueled optimism that the reopening of the Strait of Hormuz will alleviate inflation pressures by restoring oil flows. Futures for Japan and South Korea indicated gains at market open, while Australian contracts showed a slight decline. This positive sentiment follows a strong performance in US markets, where the S&P 500 climbed 1.1% and the Nasdaq 100 gained 2.5% on Thursday.
US stock futures also edged higher in Asian trading hours, with all key indexes showing gains; S&P 500 E-minis were up 0.7%, Nasdaq 100 E-minis rose 1%, and Dow E-minis advanced 0.5%. A gauge of semiconductor stocks reached a record high, largely driven by Intel Corp. This surge came after President Donald Trump announced that Intel would collaborate with Apple Inc. to design and manufacture semiconductors in the US.
The broader market reaction stems from the interim peace deal signed by the US and Iran, which is expected to normalize crude supply and prices. Oil prices dipped on Friday, reversing earlier gains, as the prospect of increased supply through the reopened Strait of Hormuz brightened. Benchmark US crude futures dropped 2.7% to $74.70 a barrel, and Brent fell 2.3% to $77.70 per barrel, marking a three-month low. This decline in oil prices is also helping to ease concerns about an economic slowdown, particularly in energy-importing regions like Europe.
