Asian Markets Gain on Optimism Over Potential US-Iran Nuclear Agreement

Asian shares climbed on May 29, 2026, as investors welcomed signals of progress in negotiations between the United States and Iran, raising hopes for a deal that could ease sanctions and stabilize global energy markets. The MSCI Asia Pacific Index advanced 0.8%, with bourses in Tokyo, Hong Kong, and Shanghai all closing higher. The rally was led by energy-sensitive sectors, as the prospect of revived Iranian oil exports pressured crude prices, alleviating inflation concerns. Japan's Nikkei 225 added 1.1%, while Hong Kong's Hang Seng Index rose 0.7%. Traders cited a tentative agreement framework, though details remained scarce. A successful pact could lift sanctions on Tehran’s oil industry, boosting global supply and reducing fuel costs for import-dependent Asian economies. The positive sentiment spread to currencies of oil-importing nations, with the Indian rupee and Philippine peso edging up against the dollar. Analysts cautioned that previous deal attempts collapsed, but the market’s immediate reaction underscored the region’s sensitivity to geopolitical shifts amid fragile global growth.