[MARKET ANALYSIS] Asia-Pac stocks rallied after Trump cancelled planned strikes on Iran and flagged a US-Iran deal

APAC Stocks: Positive

• Asia-Pac stocks rallied following on from the gains on Wall St, after US President Trump cancelled planned strikes on Iran and touted a US-Iran deal, which could be signed as soon as the weekend and would open the Strait of Hormuz, while Trump claimed that the US ended the war with Iran and he understood that Iran’s Supreme Leader has approved the deal. However, Iran pushed back on this as a Foreign Ministry spokesperson stated the issues raised about the agreement are speculation and that Iran has so far not reached a final conclusion about the agreement, but acknowledged that the text of the deal was almost ready.

ASX 200: +1.9%

• Climbed higher with outperformance in mining, materials and resources leading the advances, while energy was pressured owing to the drop in oil prices, and defensives also lagged amid the risk-on environment.

Nikkei 225: +3.4%

• Surged at the open and briefly tested the 67,000 level, with the index helped by lower oil prices and with tech and mining stocks sitting comfortably among the list of biggest gainers.

Hang Seng & Shanghai Comp: Hang Seng +1.7% / Shanghai Comp +1.6%

• Chinese markets join in on the euphoria with mining stocks among the notable gainers, while Chow Tai Fook is front-running the advances in Hong Kong after it reported a record full-year profit.

US Equity Futures: Marginally higher

• Remained afloat after rising on the hopes for a US-Iran deal, but with further upside capped, given the lack of confirmation from the Iranian side, while participants also look to the SpaceX trading debut.

European Equity Futures +1.8%

• Indicate a firmer cash market open with Euro Stoxx 50 futures up 1.8% after the cash market closed with gains of 0.8% on Thursday.