Asian markets rallied on Friday as optimism over US-Iran talks boosted regional equities, while rising oil prices kept inflation concerns in focus.

In Hong Kong, the benchmark Hang Seng Index rose 219 points, or 0.9 percent, to 25,606 on market turnover of HK$281.3 billion.

The China enterprises index was 75 points, or 0.9 percent, higher at 8,550 while the tech index was 100 points, or 2.1 percent, up at 4,869.

The Shanghai Composite Index closed up 35 points, or 0.9 percent, at 4,112 on
turnover of 1.29 trillion yuan.

The Shenzhen Component Index rose 350 points, or 2.3 percent, to 15,597 on turnover of 1.62 trillion yuan while the ChiNext Index gained 108 points, or 2.8 percent, to 3,938 on turnover of 787 billion yuan.

The gains on the mainland markets came as regulators unveiled a two-year plan to comprehensively crack down on illegal cross-border activities by businesses dealing in securities, futures and funds.

The plan, which targets overseas firms operating in China without approval, will impose a two-year grace period for winding down existing illegal businesses.

In Tokyo, the Nikkei share average soared to a record high close as AI shares rallied on the back of gains for US peers, leaving the benchmark up almost 1,655 points, or 2.7 percent, at 63,339.

In Seoul, the benchmark Kospi closed up 32 points, or 0.41 percent, at 7,847 to end the week up 4.7 percent, a sharp turnaround from the 0.1 that it lost a week ago.

The gains came as investor sentiment strengthened through the session on hopes that diplomatic progress could stabilise energy supplies after weeks of turbulence from the Middle East conflict, even as crude prices ticked higher on the day.

US Secretary of State Marco Rubio said talks to end the war could progress, eyeing help from Pakistani mediators to help strike an agreement.

"I believe the Pakistanis will be travelling to Tehran today. So hopefully that'll advance this further," he said.

Analysts read the signs as productive.

"Markets have treated the continuation of dialogue itself as modestly constructive," said Stephen Innes of SPI Asset Management.

"Still, underneath the surface, the bigger macro story remains the steady rise in US yields," he wrote in a commentary.

"Markets are increasingly repricing the possibility that the US Federal Reserve may need to stay tighter for longer or even hike as growth and inflation remain sticky." (AFP/Xinhua)



Edited by Tony Sabine