Japan and South Korea Stocks Open Higher, South Korean Stocks Hit Record High. US-Iran Draft Agreement Reached: Hormuz Strait to Open Within 30 Days, Ceasefire Extended 60 Days
TradingKey - On Tuesday, May 26, South Korea's KOSPI index broke through the 8,000-point mark at the open, rising more than 3% to hit a record high; the Nikkei 225 index opened 0.23% higher at 65,305.16 points before turning lower.
South Korean markets were closed on Monday for Buddha's Birthday, and today's gains may incorporate a catch-up effect. Among heavyweight stocks, Samsung Electronics rose nearly 3%, SK Hynix surged over 5%, and Hyundai Motor gained nearly 5%.
On the news front, Al Arabiya reported that a draft agreement between the U.S. and Iran has been reached, fueling market optimism for an end to the conflict. According to reports, the draft agreement allows for the free opening of the Strait of Hormuz, with navigation to resume within 30 days; the U.S. has pledged to ease the blockade on Iranian ports; the agreement allows Iran to sell and export oil and provides specific sanctions waivers for its oil exports, contingent on Iran's implementation of its commitments.
Regarding nuclear negotiations, the agreement stipulates that talks will continue to reach a long-term consensus. Reports indicate that the U.S. wants Iran to make clear commitments, including addressing its stockpile of highly enriched uranium and pledging not to seek nuclear weapons. A U.S. official revealed that Iran has agreed in principle to these demands, though Iran stated that specific details of the nuclear program have not yet been discussed and will be left for future negotiations. A Middle Eastern diplomatic source said the ceasefire agreement reached between the U.S. and Iran in early April will be extended by 60 days, with plans to hold consultations on the Iranian nuclear issue during this two-month buffer period.
Driven by rising expectations of U.S.-Iran peace talks, futures for the three major U.S. stock indices all rose, with Nasdaq 100 index futures climbing nearly 1%.
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