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Asian Stocks Rise on AI Optimism and Iran Peace Talk Hopes

Asian Stocks Rise on AI Optimism and Iran Peace Talk Hopes. Source: Flickr

Asian stock markets opened higher on Tuesday, supported by renewed optimism around artificial intelligence (AI) demand and reports that Iran may join peace talks with the United States. The positive sentiment helped lift regional equities, even as geopolitical tensions and central bank uncertainty kept investors cautious.

MSCI’s Asia-Pacific index excluding Japan climbed 0.9%, while South Korea’s Kospi surged 2.1% to reach a record high, its first since the Iran conflict began. Japan’s Nikkei 225 also advanced 1.2%. However, Australian stocks moved against the trend, slipping 0.3%. Meanwhile, S&P 500 futures edged up 0.1%, signaling a tentative recovery after recent losses on Wall Street.

Market confidence was partly driven by reports that Iran could still participate in negotiations with the U.S. in Pakistan, despite earlier indications it might skip the talks. However, the fragile ceasefire between the two nations remains under pressure following the U.S. seizure of an Iranian cargo ship, which prompted threats of retaliation from Tehran. Concerns over disruptions in the Strait of Hormuz also pushed oil prices higher, although Brent crude later eased 0.4% to $95.09 per barrel.

Investors are closely watching the U.S. Federal Reserve outlook, particularly the Senate confirmation hearing of Kevin Warsh, former Fed official and President Donald Trump’s nominee for Fed chair. Warsh is expected to emphasize central bank independence while addressing his stance on interest rates and quantitative easing. Analysts note his past criticism of the Fed’s large balance sheet could influence future monetary policy decisions.

In currency markets, the U.S. dollar index held steady at 98.08, while the euro and British pound dipped slightly. Gold remained stable at $4,824, and cryptocurrencies showed limited movement, with Bitcoin and Ethereum trading lower. Overall, global markets remain sensitive to geopolitical developments, monetary policy signals, and AI-driven investment trends.

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