Asian stock markets close higher as geopolitical tensions ease

Asian stock markets closed higher this Friday (12), after the President of the United States, Donald Trump, stated that there had been progress in negotiations with Iran to end the war in the Middle East.

Leading the gains, the South Korean Kospi index jumped 4.63% in Seoul to 8,123.62 points. In Tokyo, the Japanese Nikkei advanced 2.81%, to 66,020.04 points.

The Hang Seng rose 1.93% in Hong Kong, to 24,718.10 points, interrupting a sequence of seven negative trading sessions, while the Taiex rose 2.36% in Taiwan, to 44,169.04 points.

In mainland China, the Shanghai Composite rose 1.12% to 4,031.51 points, and the less comprehensive Shenzhen Composite rose 0.99% to 2,697.17 points.

Yesterday, Trump canceled a new planned attack on Iran after the Persian country's leaders reportedly approved a preliminary agreement with the US to suspend hostilities.

At the end of the morning, reports circulated that the agreement calls for Washington to commit to lifting sanctions on Iranian oil and for Tehran to guarantee the reopening of the Strait of Hormuz, through which, under normal conditions, around 20% of the world's oil transits.

In reaction to these details, Brent oil - an international benchmark - fell more than 4% in the early morning, to around US$86.5 per barrel.

In Oceania, the Australian stock market was also boosted by optimism surrounding a possible agreement between the USA and Iran: the S&P/ASX 200 advanced 1.98% in Sydney, to 8,804.00 points.

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Source: CNN