Asian equities posted gains Friday as markets responded positively to signs of diplomatic progress between the U.S. and Iran. Technology shares led the regional advance, with investors embracing a risk-on sentiment ahead of weekend negotiations. The market optimism came as President Trump urged Israel to scale back military operations in Lebanon to avoid derailing fragile cease-fire talks.

Oil prices remained stable despite the geopolitical tensions, suggesting markets are pricing in a potential diplomatic resolution. The Strait of Hormuz, a critical waterway for global energy supplies, has been at the center of concerns as both Iran and Pakistan warned that Israel's Lebanon campaign violated the cease-fire. Trump's intervention signals Washington's priority in keeping diplomatic channels open with Tehran.

The market reaction reflects growing investor confidence that the U.S.-Iran talks could yield progress, potentially easing regional tensions that have roiled markets in recent weeks. With technology shares driving Asian gains, the positive sentiment suggests traders are betting on a de-escalation scenario that would support continued risk appetite across emerging markets.