Asia markets open higher as Iran ceasefire extension lifts mood

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Asia-Pacific markets opened broadly higher Thursday, tracking U.S. stocks, which rose overnight after President Donald Trump‘s extension of the Iran ceasefire helped to buoy investor sentiment, while upbeat earnings reports also lifted sentiment.

Trump extended a two-week U.S. ceasefire on Tuesday, saying it was warranted due to Tehran’s “seriously fractured” government.

“Based on the fact that the Government of Iran is seriously fractured, not unexpectedly so and, upon 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 such time as their leaders and representatives can come up with a unified proposal,” Trump said in a Truth Social post.

The ceasefire would be extended until Tehran submitted a proposal or discussions were concluded, and the U.S. military would continue its blockade of Iranian ports, according to Trump.

However, the timeline remains uncertain. Iranian state media reported Wednesday that Tehran’s negotiators wouldn’t attend the talks with the U.S., calling them a “waste of time.” A lack of commitment from Iran reportedly prompted Vice President JD Vance to pause his trip to join peace talks. Meanwhile, Iran’s navy also said that it had seized two container ships in the Strait of Hormuz.

The West Texas Intermediate was 0.14% lower at $92.83 per barrel as of 8:02 p.m. ET. Brent crude dropped 0.17% to $101.74 per barrel.

South Korea’s Kospi advanced 1.33% while the small-cap Kosdaq was 0.58% higher. 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.

The 1.7% growth in January to March from the previous quarter exceeded Reuters’ estimates of 1.0% and rebounded from the 0.2% contraction in the prior quarter.

Japan’s Nikkei 225 gained 0.40%, while the Topix slipped 0.16%. Australia’s S&P/ASX 200 was 0.56% lower.

Hong Kong Hang Seng index futures were at 26,169, compared with the index’s last close of 26,163.24. The release of the city’s March inflation data will be closely watched by investors.

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S&P 500 futures slipped 0.1%, while the Nasdaq 100 futures were around the flatline. Futures tied to the Dow Jones Industrial Average fell by 173 points, or 0.4%.

During Wednesday’s regular session, the S&P 500 added 1.05% to finish at 7,137.90, while the tech-heavy Nasdaq added 1.64% to settle at 24,657.57. The latter had hit a new all-time intraday high in the session.

Meanwhile, the Dow Jones Industrial Average advanced 340.65 points, or 0.69%, to end the day at 49,490.03.