Nikkei leads Asian markets higher as oil falls and SpaceX IPO lifts mood

Asian equities climbed on Friday, tracking a broader global rally, as investors bet that diplomatic progress in the Middle East could cool energy prices and ease pressure on inflation.

The mood was also helped by anticipation around SpaceX’s market debut, after Elon Musk’s rocket and satellite company priced a record $75 billion initial public offering.

The listing valued SpaceX at about $1.77 trillion, putting it among the most closely watched public-market debuts in years.

The twin drivers, lower geopolitical risk and a blockbuster technology listing gave traders fresh reason to add risk after months of volatile trading driven by oil, rates and war headlines.

Peace hopes cool oil shock fears

US President Donald Trump said a peace agreement with Iran could be signed as soon as the weekend, raising expectations that a three-month conflict in the Gulf may be moving closer to a diplomatic end.

Markets have reacted sharply to each turn in the conflict, with oil prices swinging on concerns over shipping, supply routes and the risk of a wider regional war.

The latest comments were enough to push crude lower, with Brent and US West Texas Intermediate retreating toward two-month lows before trimming some of their losses.

The fall in oil helped soften inflation worries just a day after the European Central Bank raised interest rates for the first time in nearly three years.

The move underlined how energy-driven price pressures have again become a central concern for policymakers.

For investors, any durable easing in the Gulf would reduce one of the biggest macro risks hanging over equities, currencies and bonds.

Asia follows Wall Street higher

The rally spread across Asian markets after Wall Street posted strong gains overnight. South Korea’s KOSPI led the region, while Japan’s Nikkei, Hong Kong’s Hang Seng and China’s CSI300 also advanced.

Technology and growth stocks were among the main beneficiaries as lower oil and falling bond yields improved the outlook for risk assets. US Treasury yields held near lower levels after traders reduced bets on another Federal Reserve rate increase later this year.

The dollar steadied after earlier losses, while the yen remained close to levels that have previously drawn warnings from Japanese authorities. Traders are still watching for signs of intervention if the currency weakens further.

SpaceX debut adds a tech spark

SpaceX’s listing added another layer of excitement to global markets.

The company’s record IPO has drawn attention not only because of its size, but also because of its valuation and the scale of investor demand.

Analysts are watching whether the shares can hold above the IPO price once trading begins, with some market estimates pointing to a sharp first-day rise.

A strong debut would reinforce the appetite for large technology and AI-linked companies, even as questions remain over valuation and future profitability.

For now, traders are treating the IPO as another signal that risk appetite remains alive.

Combined with falling oil and hopes of a Middle East breakthrough, it has given global markets a rare moment of relief after weeks of tension.