Asia Stocks Hit Record Highs on Ceasefire Hopes; Nikkei Tops 65,000 for First Time

Asian stock markets including Japan and Taiwan climbed to record highs on May 25 as hopes grew for a ceasefire in the Middle East and the reopening of the Strait of Hormuz.

Buying was driven by easing geopolitical risks and a pullback in oil prices, which boosted expectations for earnings at companies in Asia's import-dependent economies.

The Nikkei 225 surged more than 2,000 points in morning trading on May 25, reaching as high as 65,408.87, according to Japan's Nikkei newspaper and CNBC.

The rally was fueled by expectations that the Strait of Hormuz, a vital shipping route, could reopen soon as ceasefire talks between the US and Iran entered their final stage.

President Donald Trump wrote on social media on May 23 that a ceasefire agreement with Iran would be "announced soon," adding to market optimism.

Trump posted again on May 24 saying he had instructed the US negotiating team not to rush a deal. Even so, investors continued to bet on the broader prospect of the Strait of Hormuz reopening.

In trading on May 25, New York crude futures briefly fell below $92 a barrel, indicating the recent run-up in oil prices was easing.

As of 12:45 p.m., the Nikkei 225 was up 3.04% from the previous session at 65,265.68.

Taiwan's Taiex also reached a fresh record at about the same time, rising 2.82% to 43,461.44.

Chinese stocks were also higher, posting gains of about 0.4% to 0.5% amid the broader rally.

South Korea's stock market was closed on May 25 for a substitute holiday for Buddha's Birthday.

Hong Kong's market was also closed for Buddha's Birthday, while US markets were shut for Memorial Day, observed on the last Monday of May.

Park Sang-kyung, Hankyung.com reporter highseoul@hankyung.com