- Japan's Nikkei 225 surpassed 61,000 for the first time amid Asia-Pacific gains
- Trump warned of tougher military action against Iran if no peace deal is reached
- Nikkei 225 rose nearly 4%, while Japan's Topix index increased 1.91%
Japan's Nikkei 225 crossed the 61,000 mark for the first time on Thursday as markets across Asia-Pacific extended gains despite renewed warnings from U.S. President Donald Trump over Iran.
The rally came even as Trump threatened tougher military action against Tehran if it failed to reach a peace agreement, while reports indicated the two sides were moving closer to a deal aimed at ending the conflict.
Japan led regional gains, with the Nikkei 225 climbing as much as 4% to 61,903%. The broader Topix index rose 1.91%.
Australia's S&P/ASX 200 gained more than 1%, while South Korea's Kospi advanced 1.17%, while the Kosdaq index fell 0.4%. Hong Kong's Hang Seng index futures traded at 26,423, compared with the benchmark index's previous close of 26,213.78.
Trump Warns Iran
Market sentiment remained tied to developments in the Middle East after Trump said Iran could face heavier military action if negotiations failed.
In a post on Truth Social, Trump said the U.S. military campaign known as "Operation Epic Fury" would end if Iran accepted the terms under discussion.
"Operation Epic Fury will be at an end" if Iran "agrees to give what has been agreed to, which is, perhaps, a big assumption," Trump wrote.
The comments followed reports suggesting Washington and Tehran were nearing an agreement to stop the conflict.
Focus On Yen
Investors also monitored movements in the Japanese yen after speculation over possible intervention by Japanese authorities supported the currency in the previous session.
The yen traded around 156.35 against the U.S. dollar in early Thursday trade after strengthening a day earlier.
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