HONG KONG — Markets throughout Asia experienced widespread gains Thursday as investors responded positively to Wall Street’s record performance and anticipation that a ceasefire in the Iran conflict could be extended.
Japan’s Nikkei 225 surged 2.4% to reach 59,549.59, while South Korea’s Kospi advanced 2% to 6,215.38.
The Hang Seng in Hong Kong increased 1.2% to 26,269.99, and China’s Shanghai Composite climbed 0.6% to 4,050.42. Chinese officials announced Thursday that the nation’s economy expanded 5% during the first quarter, showing improvement from the prior three-month period. Although analysts believe China has weathered early effects from the Iran conflict, some caution that the country’s enormous export sector may face greater challenges in upcoming months due to slowing worldwide economic activity.
Taiwan’s Taiex advanced 0.9%, though Australia’s S&P/ASX 200 dipped slightly by 0.1%.
Regional officials informed The Associated Press Wednesday that the United States and Iran had reached an “in principle agreement” to prolong a two-week ceasefire arrangement set to expire next week, with both sides advancing toward additional negotiations.
However, U.S. Treasury Secretary Scott Bessent cautioned that Washington was preparing secondary sanctions against entities conducting business with Iran — potentially including Chinese companies purchasing Iranian oil — to increase economic pressure on Tehran.
Crude oil markets showed stability early Thursday. Brent crude, used as the global benchmark, rose marginally by less than 0.1% to $94.94 per barrel. U.S. benchmark crude increased 0.4% to $91.66 per barrel.
Energy prices have skyrocketed since the Iran conflict erupted in late February. The Strait of Hormuz, a vital shipping channel through which approximately one-fifth of global oil normally flows, has remained mostly shut. The United States implemented a naval blockade at Iranian ports this week to pressure Tehran into reopening the waterway and accepting negotiations.
“The key upside risk for the market is that peace talks between the US and Iran break down,” ING Bank strategists Warren Patterson and Ewa Manthey wrote in a note Thursday. “This isn’t an unrealistic scenario, given that US and Iranian demands remain fairly wide apart.”
Wednesday saw Wall Street achieve record levels amid growing confidence about progress toward a longer-term ceasefire in the Iran war. The S&P 500 benchmark climbed 0.8% to 7,022.95, surpassing its previous record established in January.
The Nasdaq composite jumped 1.6% to 24,016.02, while the Dow Jones Industrial Average slipped 0.2% to 48,463.72.
Bank of America shares increased 1.8% after reporting quarterly earnings that exceeded expectations, with CEO Brian Moynihan noting indicators of a “resilient American economy” including strong consumer spending patterns. Morgan Stanley shares gained 4.5% following similarly strong quarterly performance.
Allbirds, the San Francisco-based footwear company, saw its stock price explode 582% to nearly $17 after announcing a pivot to artificial intelligence and plans to rebrand as NewBird AI.
In commodity trading, precious metals posted gains. Gold prices advanced 0.5% Thursday to $4,846.40 per ounce, while silver climbed 1.3% to $80.62 per ounce.
Currency markets showed the U.S. dollar declining to 158.58 Japanese yen from 159 yen. The euro strengthened to $1.1814, up from $1.1799.
