Asian Stocks Trade Higher on US-Iran Peace Deal, Nikkei 225 Leads With Record High

• Asian stocks rise sharply on Thursday. 
• Hopes that the US and Iran will conclude the conflict and reopen the Strait of Hormuz improve risk sentiments. 
• The Nikkei 225 is the best performer for the day, rising over 5.70% to a record high. 

Most Asian equities trade in positive territory on Thursday amid optimism over a possible deal to end the war between the United States (US) and Iran. 

An Iranian official said on Wednesday that it was reviewing a US peace proposal that sources said would formally end the war while leaving unresolved the critical US demands that Iran suspend its nuclear program and reopen the Strait of Hormuz. Iran is expected to hand over its reply on Thursday to mediators about the US proposal to end the war.  

Earlier on Wednesday, US President Donald Trump stated that the US has had “very good talks” with Iran over the past 24 hours. 

“We remain on the path towards de-escalation, and towards an end to the conflict,” said Michael Brown, a strategist at Pepperstone in London. “While that path is clearly a rough one, so long as we remain on it, and the direction of travel remains a more optimistic one, then risk appetite should remain underpinned.”

The Nikkei 225, Japan’s benchmark, surged over 5.70% to a fresh record high of around 62,915 earlier on Thursday and currently trades near 62,825. The Japanese Yen (JPY) remains in focus after rallying on Wednesday amid suspected speculation that officials are intervening in the market. 

Japan’s top foreign exchange official, Atsushi Mimura, stated on Thursday that he will closely monitor the foreign exchange (FX) markets. Mimura also declined to comment on FX intervention and specific currency levels.

China and Hong Kong stock markets gain momentum on Thursday, with the SHANGHAI, China’s main stock market index, increasing by 0.25% to 4,170. The Hong Kong Stock Exchange jumps by 1.55% to 26,625. 

Meanwhile, the South Korean stock, the benchmark KOSPI, rises by 0.22% to 7,405. The index extends the rally after hitting a series of record highs on gains in chipmakers.

India’s Nifty50 was down 0.02% to trade at 24,325 on Thursday. In Taiwan, the Taiex climbs by 2.00% to 41,970. Other markets in Southeast Asia trade higher.