[MARKET ANALYSIS] Asia-Pac stocks gained amid hopes of a nearing US-Iran peace agreement

APAC Stocks: Positive

• Asia-Pac stocks gained with risk appetite boosted by hopes of a nearing US-Iran deal after US President Trump announced on Saturday that an agreement has largely been negotiated, subject to finalisation and would include the reopening of Hormuz. Furthermore, a separate report noted there is agreement on 95% of a deal, but it needs to be drafted and is estimated to take 5-6 days to receive approval, while Trump also posted the following day that he informed representatives not to rush into a deal and stated that the blockade will remain in full force and effect until an agreement is signed.

ASX 200: +0.5%

• Index is led by outperformance in the mining, materials and resources sectors, while energy and defensives are at the other end of the spectrum amid lower oil prices and the positive risk tone.

Nikkei 225: 2.8%

• Rallied to a fresh record high above the 65,000 level, with sentiment helped by lower oil prices and amid continued tech strength, with SoftBank adding to last week's surge.

Hang Seng & Shanghai Comp: Shanghai Comp +0.6%

• Mainland Chinese markets conform to the positive mood following another liquidity boost by the PBoC, but with the upside limited amid the holiday closure in Hong Kong and the absence of Stock Connect flows.

US Equity Futures: Positive

• Gained at the reopening amid hopes that a US-Iran agreement is nearing.

European Equity Futures +1.0%

• Indicate a positive cash market open with Euro Stoxx 50 futures up 1.0% after the cash market closed with gains of 1.0% on Friday.