SoftBank soars 12%+ after Iran–U.S. peace deal sparks Asian rally

• Major Asian tech stocks rallied broadly: Samsung Electronics and SK Hynix rose 4.5% and 6.42% respectively, while TSMC gained 2.81% and Foxconn added 2.69%
• The peace deal, mediated by Pakistan, includes immediate termination of military operations, reopening of the Strait of Hormuz without tolls, and ending of the U.S. naval blockade of Iran, with official signing scheduled for June 19 in Switzerland
• Investors are rebalancing portfolios while maintaining exposure to AI-related stocks, contributing to the tech sector's strong performance amid improved geopolitical conditions

Market Summary: Asian Tech Stocks Surge on Iran-U.S. Peace Deal

Key Performance:

Asian technology stocks rallied sharply on Monday following news of a peace agreement between the United States and Iran. Japanese tech investor SoftBank led gains among major Asian tech stocks, surging over 12% to close the session up 10%. Tokyo Electron and Advantest rose 7% and 7.67%, respectively.

Sector Movement:

South Korean memory chip manufacturers posted strong gains, with Samsung Electronics advancing 4.5% and SK Hynix climbing 6.42%. Taiwan Semiconductor Manufacturing Company (TSMC) increased 2.81%, while Foxconn (Hon Hai Precision) added 2.69%. These companies have experienced substantial gains in recent weeks, with Samsung Electronics and SK Hynix previously crossing key valuation milestones.

Catalyst:

According to Pakistan's Prime Minister Shehbaz Sharif, Iran and the U.S. have agreed to an immediate and permanent cessation of military operations across all fronts. The official signing ceremony is scheduled for Friday, June 19, in Switzerland, with Pakistan serving as mediator. President Trump confirmed the deal, stating Iran agreed to reopen the Strait of Hormuz without tolls, while the U.S. will end its naval blockade.

Market Implications:

The peace agreement triggered broad risk-on sentiment across Asian markets. BNP Paribas Asset Management's CIO for Asia ex-Japan, Ecaterina Bigos, noted investors are rebalancing portfolios while maintaining exposure to the AI sector, which has supported tech stock performance.

The deal's implications for global oil flows and reduced geopolitical risk have created positive momentum across broader Asian equity markets.