Asian markets brushed aside U.S. warnings to Iran on Thursday, with Japan’s Nikkei 225 index surging past 62,000 for the first time in a historic milestone that captured the region’s upbeat mood.
The benchmark jumped more than 5 per cent as investors bet on de-escalation in the Middle East, despite President Donald Trump’s threat to bomb Iran at a much higher level if it rejects a peace deal. Reports suggest Washington and Tehran are inching towards an agreement to end hostilities, easing fears of broader conflict.
Technology and materials sectors led Japan’s charge. Softbank shares rocketed over 13 per cent on AI-driven optimism and strong earnings prospects. Ibiden, a chip packaging specialist, topped performers with a 17 per cent gain, followed by Mitsui Kinzoku at 16 per cent, Renesas Electronics at 13 per cent, and Tosoh Corporation at 12 per cent. These moves reflected robust U.S. export demand, as noted by Nikkei Asia.
The broader Topix rose 2.37 per cent. Australia’s S&P/ASX 200 climbed 0.9 per cent, powered by miners, while Hong Kong’s Hang Seng advanced 1.47 per cent and China’s CSI 300 edged up 0.38 per cent. South Korea bucked the trend, with the Kospi down 0.68 per cent and Kosdaq off 0.56 per cent amid corporate governance concerns.
Trump elaborated in a Truth Social post, stating that the U.S. military operation known as Operation Epic Fury will be at an end if Iran agrees to give what has been agreed to, which is, perhaps, a big assumption. He added that this would allow the Hormuz Strait to be “OPEN TO ALL,” including Iran.
Oil prices ticked higher on hopes of eased tensions, with June West Texas Intermediate futures up 0.92 per cent at $95.95 per barrel. U.S. stock futures were flat to slightly lower ahead of the open.
The previous day’s Wall Street gains set the tone, with the S&P 500 up 1.46 per cent at a record 7,365.12, the Nasdaq Composite rising 2.02 per cent to 25,838.94, and the Dow adding 1.24 per cent to 49,910.59, following positive Gulf updates.
A weakening yen at ¥152.30 to the dollar further aided Japanese exporters, and analysts at Goldman Sachs predict more upside for the Nikkei if talks succeed.