Asia-Pacific markets opened higher on Thursday after gains on Wall Street, as signs of progress in negotiations between the U.S. and Iran eased concerns over the Middle East conflict and cooled oil prices.
U.S. President Donald Trump said Washington was in the "final stages" of negotiations with Iran, according to a White House pool report. The comments lifted investor sentiment across equity markets.
Oil prices had surged after the Trump administration imposed blockades on Iranian ports, while Tehran effectively closed the Strait of Hormuz, a key global energy shipping route.
South Korean stocks rose more than 4%, helping the broader MSCI Asia Pacific Index gain 1.2%. Shares of Samsung Electronics climbed as much as 7% after the company reached a last-minute agreement with its labour union to avoid a strike.
Japan's Nikkei 225 rose 0.92%, while Australia's S&P/ASX 200 gained 1.27%. Hong Kong's Hang Seng index futures traded at 25,761, above the benchmark's previous close of 25,651.12.
The gains in equities also supported U.S. Treasuries on Wednesday, while a gauge of the dollar weakened. Traders scaled back expectations for U.S. Federal Reserve rate increases by the end of the year, although markets still expect the central bank's next move to be a rate hike. Before the U.S. attack on Iran in late February, traders had expected multiple rate cuts.
Iran Reviews Proposal
Iran is reviewing a new U.S. draft in response to Tehran's 14-point proposal and has yet to respond, Tasnim reported.
Iranian President Masoud Pezeshkian said in a post on X that Iran had "explored every avenue to avert war" and added that "all paths remain open from our side".
Trump also said a deal would be reached or "we're going to do some things that are a little bit nasty, but hopefully that won't happen", according to the White House pool report.
Investors have previously reacted positively to signs of progress in negotiations between Washington and Tehran even without visible breakthroughs in talks.
U.S. futures were lower in early Asian trade. Futures linked to the S&P 500 fell 0.3%, while Nasdaq 100 futures declined 0.4%. Dow Jones Industrial Average futures slipped 52 points, or 0.1%.
On Wednesday, the Dow Jones Industrial Average rose 645.47 points, or 1.31%, to close at 50,009.35. The S&P 500 gained 1.08% to 7,432.97, while the Nasdaq Composite advanced 1.54% to 26,270.36.
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