Japan's Nikkei index jumped more than 5% during the morning session on May 2, setting a new intraday peak, driven by expectations of a US-Iran agreement to halt the Middle East conflict. Meanwhile, crude oil futures declined.
The sharp rally in the Nikkei unfolded against a backdrop of investor optimism about peace prospects in the Middle East, widely seen as a positive tailwind for stock markets. Falling oil prices also helped fuel buying sentiment.
Analysts said that if a deal is signed, pressure on energy markets would ease, helping to stabilize input costs and supporting global economic growth.
