HONG KONG (AP) — Asian stock markets mostly climbed on Thursday, with oil prices also rising. Investors are keeping a close eye on possible ceasefire talks in the ongoing conflict involving Iran.
In Tokyo, the Nikkei 225 soared 2.4% to hit a new record of 59,518.34, bouncing back from earlier downturns since the war started. South Korea’s Kospi went up 2.2% to 6,226.05.
Hong Kong’s Hang Seng rose by 1.7% to 26,398.54, and the Shanghai Composite index saw a 0.7% increase to 4,055.55. China reported a surprising 5% growth rate for the first quarter, showing resilience despite the conflict. However, some experts warn that China’s exports could suffer soon as global economic growth slows.
Taiwan’s Taiex also saw a bump, trading 1.1% higher. Shares of chipmaker TSMC increased 0.2% ahead of its earnings announcement, which revealed a 58% profit surge that exceeded analysts’ expectations. Conversely, Australia’s S&P/ASX 200 dipped 0.3%.
On Wednesday, officials indicated that the U.S. and Iran have reached an initial agreement on extending a ceasefire deal, which is set to expire soon, paving the way for more discussions.
However, challenges loom. U.S. Treasury Secretary Scott Bessent warned that Washington is ready to impose secondary sanctions, targeting businesses engaging with Iran—including those in China buying Iranian oil. This move aims to increase economic pressure on Iran.
Oil prices jumped early Thursday. Brent crude rose 1.6% to $96.44 per barrel, while U.S. crude climbed 1.4% to $92.58. Since the conflict began in late February, oil prices have soared, largely due to the blockade of the Strait of Hormuz. This key waterway typically sees about 20% of the world’s oil passing through but remains heavily restricted.
Analysts from ING Bank noted, “The key upside risk for the market is that peace talks between the U.S. and Iran break down.” They stress that continued divergence in demands makes this scenario possible.
In the U.S., Wall Street celebrated a record high on Wednesday, fueled by optimism around prolonged ceasefire talks in Iran. The benchmark S&P 500 rose 0.8% to 7,022.95. The Nasdaq composite gained 1.6%, while the Dow dipped slightly.
Bank of America shares increased by 1.8% after reporting stronger-than-expected results. Morgan Stanley also saw a significant rise of 4.5%. A notable surge was observed in the share price of San Francisco-based Allbirds, which jumped 582% to nearly $17 after announcing a shift toward artificial intelligence and a rebranding initiative.
Gold and silver prices also ticked upward, with gold climbing to $4,836.50 per ounce and silver rising to $80.14 per ounce. Meanwhile, the U.S. dollar weakened slightly against the Japanese yen and the euro.
This complex interplay of markets reflects both the impact of geopolitical events and the resilience of major economies. Keeping an eye on future developments, especially in U.S.-Iran relations, will be essential for investors in the coming weeks.
For updates on these significant issues, you can check The Associated Press for the latest developments.
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Iran war, Financial markets, War and unrest, Oil and gas industry, Iran government, General news, Allbirds, Inc., Morgan Stanley, Iran, Business, Warren Patterson, Brian Moynihan, World news, Bank of America Corp., Ewa Manthey, Scott Bessent, China government, Donald Trump, World News
