Asian Stocks Rally on Ceasefire Hopes and Bargain Buying

Asian equity markets climbed higher on Friday, driven by cautious optimism surrounding ceasefire negotiations between Iran and the United States. Regional benchmarks were also on track to close out the week with strong gains, buoyed by bargain hunting after sharp sell-offs in March.

South Korea's KOSPI led regional gains, surging nearly 1.9% on the day and approaching a remarkable 10% weekly jump — the best performance across Asian markets this week. Technology stocks drew significant buying interest, while the Bank of Korea's decision to hold interest rates steady at 2.50% had little impact on market sentiment. Japan's Nikkei 225 advanced 1.5%, heading for a 7% weekly gain, supported partly by strong earnings from Fast Retailing, the parent company of Uniqlo, which also raised its full-year profit outlook. However, Japan's broader TOPIX index was flat after producer price inflation came in hotter than expected in March, raising concerns about potential Bank of Japan rate hikes.

Chinese equities also posted solid gains, with the CSI 300 rising 1.2% and the Shanghai Composite adding 0.7%. China's inflation data for March presented a mixed picture — consumer prices contracted month-over-month, suggesting that the Lunar New Year spending boost faded quickly, while producer prices rose more than anticipated, hinting at modest improvement amid ongoing deflationary pressures. Australia's ASX 200 slipped 0.3% on the day but remained on pace for a 4.3% weekly advance. Singapore's Straits Times Index was flat with a 0.7% weekly gain, while India's Nifty 50 futures edged slightly lower, though the index was still set to finish the week up over 5%.

Investor attention also remained firmly on U.S. consumer price index data released Friday and the upcoming Iran-U.S. ceasefire talks scheduled in Pakistan, with market participants closely watching for any breakthroughs that could ease geopolitical tensions.