Nikkei leads Asian rally as oil falls and SpaceX $75B IPO lifts mood

Asian equities climbed on Friday, led by Japan's Nikkei, as falling oil prices and SpaceX's record $75 billion IPO boosted risk appetite across the region.

Asian equities rose on Friday, led by Japan's Nikkei, as falling oil prices and SpaceX's record $75 billion IPO boosted risk appetite across the region.

The rally drew support from two distinct catalysts: diplomatic progress in the Middle East that could cool energy costs, and the pricing of the largest US initial public offering in history, according to market participants tracking the moves.

SpaceX priced 555.6 million shares at $135 each, raising $75 billion and valuing Elon Musk's rocket and satellite company at $1.77 trillion. The IPO surpasses Saudi Aramco's $25.6 billion offering in 2019 and will begin trading on the Nasdaq on Friday under the ticker SPCX. Musk will retain 82% voting control after the offering.

The dual catalysts — falling oil prices reducing inflationary pressure and the SpaceX debut signaling renewed appetite for large-scale equity offerings — could support further gains in Asian markets, with traders watching for potential spillover into US futures later Friday.

Oil decline and IPO momentum drive regional gains

The drop in crude prices followed diplomatic efforts to de-escalate tensions in the Middle East, with investors betting that a resolution could ease one of the key drivers of global inflation. Lower energy costs benefit Asian importers including Japan, which relies heavily on foreign oil for its energy needs.

SpaceX's IPO marks a milestone for global capital markets. The company's $1.77 trillion valuation makes it the seventh-most valuable US-listed firm, ahead of Meta Platforms and Tesla. Goldman Sachs, Morgan Stanley, BofA Securities, Citigroup and JPMorgan served as joint book-running managers for the offering.

The Nikkei's outperformance reflects Japan's sensitivity to both oil prices and global risk appetite. A sustained decline in crude would improve terms of trade for the world's third-largest economy, while the successful pricing of SpaceX's IPO signals that investor demand for large equity offerings remains strong despite elevated valuations.

This article is for informational purposes only and does not constitute investment advice.