Asian tech stocks surged Monday following news that Iran and the U.S. have reached a deal to end the Middle East conflict. Japanese tech investor SoftBank rose over 12%, while Samsung Electronics and SK Hynix gained 4.65% and 6.42% respectively. Pakistan's Prime Minister Shehbaz Sharif announced on Sunday that both countries have agreed to immediate and permanent termination of military operations, with an official signing ceremony scheduled for Friday, June 19, in Switzerland. The rally reflects risk-on sentiment as investors anticipate the reopening of the Strait of Hormuz and the end of the U.S. naval blockade of Iran, according to U.S. President Donald Trump's Truth Social post. The gains build on recent momentum in the tech sector, driven by AI-related investment flows and portfolio rebalancing.
SoftBank Leads Asian Tech Stock Rally With 12% Gain
SoftBank was the best performer among major tech stocks in Asia, rising over 12%. Tokyo Electron and Advantest added 9.19% and 7.69% respectively.
Memory chip companies Samsung Electronics and SK Hynix, both heavyweights on South Korea's Kospi Index, gained 4.65% and 6.42% respectively. Taiwan Semiconductor Manufacturing Co. (TSMC) rose 2.16%, while Hon Hai Precision, also known as Foxconn, added 2.5%.
SoftBank, Samsung Electronics, and SK Hynix have seen significant gains in recent weeks. Last month, Samsung Electronics and SK Hynix each crossed $1 trillion market valuation. SoftBank recently became the most valuable company in Japan.
Iran-U.S. Peace Deal Announced for June 19 Signing
According to Pakistan's Prime Minister Shehbaz Sharif on Sunday, both Iran and the U.S. have agreed to a deal, with both sides declaring immediate and permanent termination of military operations on all fronts. The official signing ceremony will be on Friday, June 19, in Switzerland. Pakistan has served as a mediator between the two countries.
"The Deal with the Islamic Republic of Iran is now complete," U.S. President Donald Trump said in a Truth Social post. Trump stated the deal will reopen the Strait of Hormuz without a toll system and the U.S. will end the naval blockade of Iran. "Ships of the World, start your engines," Trump said. "Let the oil flow!"
Analyst Attributes Tech Gains to AI Investment Flows
The broader tech space has performed well, according to Ecaterina Bigos, BNP Paribas Asset Management's chief investment officer of core investments Asia ex Japan.
"Because again, not to forget that investors are trying to rebalance some parts of the portfolios, but they still want to stay in that race of AI," she told CNBC's "Squawk Box Asia" on Monday.
Broader Asia markets were also higher Monday, amid signs of the end of the Middle East conflict.
FAQ
What caused Asian tech stocks to surge on Monday?
Asian tech stocks surged Monday following the announcement that Iran and the U.S. have reached a peace deal to end the Middle East conflict. Pakistan's Prime Minister Shehbaz Sharif announced on Sunday that both countries agreed to immediate and permanent termination of military operations, with an official signing ceremony scheduled for Friday, June 19, in Switzerland.
How much did SoftBank's stock rise?
SoftBank rose over 12% on Monday, making it the best performer among major tech stocks in Asia. Other Japanese tech stocks also posted strong gains, with Tokyo Electron adding 9.19% and Advantest gaining 7.69%.
What did President Trump say about the Iran-U.S. deal?
U.S. President Donald Trump confirmed in a Truth Social post that "The Deal with the Islamic Republic of Iran is now complete." He stated the deal will reopen the Strait of Hormuz without a toll system and the U.S. will end the naval blockade of Iran, saying "Ships of the World, start your engines. Let the oil flow!"
