Key points:

• SK’s Kospi pops to new record
• Asian equities are on fire
• US-Iran deal close?

Asian economies are on a roll. A day after Japan’s Nikkei 225 climbed to a fresh peak, its Korean peer followed right up.

🚀 Seoul Joins the Record Party

• South Korea’s Kospi blasted to a fresh all-time high of 8,094.90 on Tuesday as traders returned from a public holiday in full risk-on mode. Apparently, one record from Japan’s Nikkei yesterday simply wasn’t enough excitement for Asia this week.
• Investor sentiment got a lift from hopes that the US and Iran may inch closer to some form of diplomatic breakthrough. Talks about peace talks and prospects of lower oil prices are all it took.
• The smaller Kosdaq index also climbed, up 1.3%, though gains moderated later in the session. Small-cap stocks tend to swing harder because they’re more sensitive to shifts in investor confidence and broader market momentum.

🛢️ Peace Hopes and Reality Checks

• President Donald Trump said negotiations with Iran were “proceeding nicely,” while also warning that military action could resume if talks collapse. So yes, markets are pricing in optimism — but with one eye permanently glued to the headlines feed.
• Adding to the mixed signals, US Central Command reportedly carried out “self-defense strikes” against Iranian missile launch sites and boats allegedly attempting to deploy naval mines. Far from calm and orderly.
• Oil prices traded mixed after the comments and military developments. Energy traders are now stuck balancing two competing narratives: possible de-escalation versus the risk that tensions flare up again faster than a meme stock after a cryptic tweet.

📈 Asia Feeds Off Global Momentum

• Japan’s Nikkei 225 cooled off slightly with a 0.32% pullback after smashing through 65,000 for the first time Monday. Some profit-taking kicked in — trader language for “that rally was amazing, now let me lock in gains before destiny intervenes.”
• Bank of Japan Deputy Governor Ryozo Himino said policymakers are still evaluating the timing of future rate hikes as they monitor Middle East developments. Rising energy prices complicate just about everything because they can fuel inflation while simultaneously slowing economic growth.
• Futures pointed to another upbeat session on Wall Street, with Nasdaq futures up 1.2%, S&P 500 futures adding 0.8%, and Dow futures climbing 300 points. US markets were closed Monday for Memorial Day, so traders returned Tuesday with plenty of pent-up enthusiasm.

Source: Tradingview