Asian stock markets opened higher on Thursday, with gains across Japan, South Korea and Australia, as investors balanced optimism over corporate earnings against mounting geopolitical tensions in the Middle East and another rise in oil prices.
Japan's Nikkei 225 climbed 1.22%, while South Korea's Kospi surged 3.47%. Australia's ASX 200 advanced 1.06%, while China's Shanghai Composite slipped 0.01%.
The positive start came even as investors remained cautious over developments in the Middle East. Market participants continued to assess whether stronger corporate earnings would offset concerns over artificial intelligence spending, while rising crude prices renewed fears that inflation could remain elevated.
Wall Street, however, pointed to a softer opening. Futures tied to the Dow Jones Industrial Average fell 75 points, while S&P 500 futures declined 0.3% and Nasdaq-100 futures lost 0.4% as investors digested earnings updates and monitored geopolitical developments.
Oil prices extended their advance after another flare-up in the Middle East raised fresh concerns over global energy supplies. Brent crude for September delivery climbed 2% to $95.99 a barrel, while U.S. West Texas Intermediate rose about 1.7% to $88.27 a barrel.
The latest gains followed reports that a tanker was struck by an unidentified projectile about 70 nautical miles southwest of Al Shuqaiq, according to the United Kingdom Maritime Trade Operations. The incident triggered a fire onboard, although no casualties were reported.
The geopolitical backdrop also remained tense after the United States carried out another round of strikes on Iran. U.S. Secretary of State Marco Rubio said Tehran was "not serious about talks," while President Donald Trump warned that any attack on ships transiting the Strait of Hormuz would prompt the United States to target Iranian infrastructure, including bridges and power plants. His remarks followed the collapse of the U.S.-Iran ceasefire and the deaths of three American service members.
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