[MARKET ANALYSIS] Asia-Pac stocks rallied after US and Iran agreed to an interim peace deal to end hostilities and reopen the Strait of Hormuz

APAC Stocks: Positive

• Asia-Pac stocks rallied following the announcement that the US and Iran reached an agreement on an interim peace deal to end the hostilities and reopen the Strait of Hormuz, while the deal, which is scheduled to be signed on Friday, immediately ends the US naval blockade against Iran and provides time for negotiations towards a final deal to be held for a period of 60 days. However, there are some differing views between the sides regarding the release of funds, with Iran claiming a USD 12bln unconditional fund release, which a US official pushed back on, stating that any release of Iranian funds is tied to a pay-for-performance deal, while President Trump warned that the US would resume Iran strikes if it can't reach a nuclear accord.

ASX 200: +1.4%

• Index is led higher by outperformance in the mining, materials and resources sectors, with notable strength seen in gold miners, while energy is at the other end of the spectrum owing to the reaction in underlying commodities to the deal to extend the ceasefire and open the Strait of Hormuz.

Nikkei 225: +5.6%

• Surged to a fresh record high above the 69,000 level with tech, manufacturing and heavy industry stocks boosted amid the lower oil prices and peace agreement.

Hang Seng & Shanghai Comp: Hang Seng +0.5% / Shanghai Comp +1.0%

• Chinese markets tracked the gains of regional peers as the PBoC continues to boost its daily liquidity efforts, and with the gains led by mining and tech, while China's oil major suffers following the drop in oil prices.

US Equity Futures: Higher

• Steadily rallied after gapping higher at the open on the US-Iran peace agreement.

European Equity Futures +1.7%

• Indicate a higher open with Euro Stoxx 50 futures up 1.7% after the cash market closed with gains of 2.2% on Friday.