Investors cheered Friday’s record‑breaking SpaceX IPO, sparking a broad “risk‑on” rally across Asian equities. The Tokyo Stock Exchange’s Nikkei 225 jumped 2.3%, while South Korea’s Kospi rose 2.1%, lifting regional sentiment after weeks of geopolitical tension. The upbeat tone lifted tech and consumer stocks, which outperformed indices.

The surge follows a rare diplomatic breakthrough between Washington and Tehran, which removed a major source of market uncertainty. With the nuclear standoff eased, foreign investors renewed appetite for emerging‑market exposure, boosting fund inflows into Japanese and Korean ETFs. Banks in Tokyo noted a surge in foreign inflows. Analysts note that the rally could test the resilience of regional corporate earnings amid lingering supply‑chain disruptions.

For investors, the rally underscores how geopolitical shifts can instantly reprice Asian equities. Portfolio managers may rebalance toward higher‑beta stocks while keeping watch on any reversal in US‑Iran talks. The day’s gains locked in roughly $5 billion of added market capitalisation across the two indices, confirming that sentiment can outweigh fundamentals in the short term.