BANGKOK (AP) — Shares surged Thursday in Asia, with benchmarks in Japan and South Korea setting fresh records, after the U.S. and Iran signed their initial agreement ending the war. The rally in Asia followed a retreat Wednesday on Wall Street driven by speculation the Federal Reserve may raise interest rates this year to curb inflation. U.S. futures were higher early Thursday, while oil prices fell.Leaders from the U.S. and Iran signed the deal on a permanent end to hostilities that starts a 60-day negotiating clock to reach a final deal on the future of Iran’s nuclear program. In the meantime, it calls for Tehran to dilute its stockpile of highly enriched uranium. The deal waives U.S.-backed sanctions on the country, immediately allowing Iran to sell its oil freely in a major concession from Washington, according to details released by both countries.
The news came after U.S. markets closed. In Tokyo, the Nikkei 225 resumed its climb, gaining 1.9% to 71,235.78. It topped 70,000 for the first time this week and is still gaining thanks to hopes for an end to the war and buying of high-tech shares due to the artificial intelligence boom.
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“This is very broad-based rally, I believe it’s actually showing some confidence that the Japanese economy is going to recover further from the ... the end of the war, and presumably the oil prices in the near future,” said Neil Newman, head of strategy at Astris Advisory Japan.
