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Stocks in Japan and South Korea rose sharply on Thursday, trailing overnight gains on Wall Street after President Donald Trump extended a deal to end hostilities with Iran, boosting investor sentiment and firming corporate earnings.
Trump extended the US arms embargo for two weeks on Tuesday, saying it was approved because of Tehran’s “very fragmented” government.
“Based on the fact that the Government of Iran is badly broken, not unexpectedly and, at the request of Field Marshal Asim Munir, and Prime Minister Shehbaz Sharif, of Pakistan, we have been asked to hold our attack on the country of Iran until their leaders and representatives can come up with a joint proposal,” said Trump in a post on Truth Social.
The ceasefire will continue until Iran submits a proposal or talks, while the US military continues to blockade Iranian ports, Trump said.
However, the timeline remains uncertain. Iranian media reported on Wednesday that Tehran’s talks will not come to the talks with the US, calling it a “waste of time.” Iran’s non-commitment has reportedly prompted Vice President JD Vance to pause his trip to participate in peace talks. Meanwhile, the Iranian Navy also said they seized two container ships in the Strait of Hormuz.
Oil prices are rising, with West Texas Intermediate futures up 0.49% to $93.42 per barrel as of 9:33 pm ET. Brent crude added 0.28% to $102.20 a barrel.
Japan’s Nikkei 225 briefly touched an all-time intraday high of 60,013.98, before slipping 0.31% in profit-taking.
Japan’s manufacturing activity expanded at its fastest pace in four years in April, according to the S&P Global flash Purchasing Managers’ Index, as firms ramped up output amid supply concerns linked to Middle East tensions.
Heavyweight index Company Softbank Group Corp gained more than 6%. A Bloomberg report said the company is taking on more debt for its AI push, seeking a $10 billion loan backed by OpenAI Holdings.
South Korea’s Kospi also hit an all-time intraday high of 6,538.72, up 1.58%. The smaller Kosdaq was up 0.58%. The country’s economy grew more than expected in the first three months of the year, recording the fastest growth since the third quarter of 2020.
Growth of 1.7% in January to March from the previous quarter beat Reuters estimates of 1.0% and rebounded from a contraction of 0.2% in the previous quarter.
Shares of Samsung Electronics hit a new record high of 227,000 days. Investors were also keeping an eye on labor developments, as the company’s unions expected more than 30,000 workers to attend a meeting on Thursday in South Korea, ahead of a planned strike next month.
Australia’s S&P/ASX 200 traded choppy, down 0.76%.
Mainland China’s CSI300 index rose 0.35%, while Hong Kong’s Hang Seng index fell 0.51% ahead of the city’s March data release.
S&P 500 futures decreased by 0.1%, while the Nasdaq 100 futures they were around the flatline. Futures tied to the Dow Jones Industrial Average down 173 points, or 0.4%.
During the regular session on Wednesday, i S&P 500 added 1.05% to end at 7,137.90, while tech-heavy Nasdaq added 1.64% to reach 24,657.57. The latter had hit a new intraday session high.
Meanwhile, the The Dow Jones Industrial Average advanced 340.65 points, or 0.69%, to end the day at 49,490.03.
– CNBC’s Sean Conlon again Lisa Kailai Han contributed to this report.
