Global financial markets rallied on Thursday as optimism over a possible US-Iran peace deal boosted investor sentiment, sending Asian stocks to record highs while oil prices and the US dollar weakened.
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Asian equity markets surged, with Japan’s Nikkei index crossing the 62,000 mark for the first time after returning from a holiday. Strong earnings in the technology sector also supported gains across South Korea and Taiwan, while the MSCI Asia-Pacific index outside Japan rose 1% to a new record high.
Market sentiment improved after Iran said it was reviewing a US peace proposal that could potentially end the ongoing conflict, although key issues such as nuclear restrictions and control of the Strait of Hormuz remain unresolved. The optimism followed earlier reports of progress in negotiations between Washington and Tehran.
Oil prices, however, remained volatile. Brent crude, which had dropped nearly 8% in the previous session, steadied slightly above $102 per barrel. Despite the decline, prices remain significantly higher than pre-conflict levels due to ongoing geopolitical risks and uncertainty over supply routes.
Analysts noted that markets are still uncertain about whether a final agreement will be reached and how quickly global oil flows could stabilise even if a deal is signed. The Strait of Hormuz, a key global energy shipping route, continues to be a major point of concern for traders.
In currency markets, the US dollar slipped against major currencies, while the yen remained stable after recent sharp fluctuations that raised speculation of possible intervention by Japanese authorities.
Investors are also closely watching upcoming US economic data, including the non-farm payrolls report, which is expected to provide further clues about the health of the world’s largest economy and future Federal Reserve policy direction.
Read More: Oil prices fall below 100 dollars on Iran deal hopes
Despite uncertainty, strong corporate earnings from major technology firms have continued to fuel global risk appetite, supporting the ongoing rally in equity markets.