Asian equity markets advanced on Tuesday, buoyed by growing optimism over the prospect of a longer-term agreement between the US and Iran, despite the breakdown of peace talks over the weekend. President Donald Trump said Tehran had contacted Washington just hours after the US imposed a naval blockade on Iranian oil shipments in the Strait of Hormuz.
Oil prices fell, easing inflationary pressures and tempering expectations that central banks will keep interest rates elevated or tighten policy further. Market sentiment was further supported by renewed enthusiasm for artificial intelligence and related technologies, with AI-linked stocks in South Korea, Japan, and Taiwan leading gains across the region.
