Asian Markets Hit Six-Week High on U.S.-Iran Talk Hopes

Asian equities climbed to a six-week high Tuesday as reports of potential U.S.-Iran peace talks lifted risk appetite across the region. MSCI's broadest index of Asia-Pacific shares outside Japan advanced 1.5%, while South Korea's Kospi led regional gains with a 3.02% surge and the Kosdaq added 1.65%. Hong Kong's Hang Seng rose 1.2% and Chinese blue-chips gained 0.5%. The rally reflects a straightforward geopolitical risk-off unwind: diplomatic signals between Washington and Tehran eased concerns over potential supply disruptions and broader conflict escalation, prompting broad buying across Asian markets. South Korea, given its export-sensitive and tech-heavy index composition, tends to amplify such sentiment-driven moves. The move is notable for its breadth, gains spanned Northeast Asia, Greater China, and Southeast Asia simultaneously, suggesting the geopolitical catalyst was the primary driver rather than any country-specific fundamental. Whether the advance holds depends heavily on how U.S.-Iran talks develop; any breakdown in diplomatic momentum would likely reverse the risk premium compression that drove Tuesday's session.