Asia-Pacific markets experienced a robust Thursday trading session, mirroring strong gains on Wall Street, as investor optimism surged over the potential resolution of the Middle East conflict, which subsequently softened global oil prices.
A key catalyst for this positive sentiment was U.S. President Donald Trump's declaration that Washington was in the "final stages" of negotiations with Iran. This news significantly lifted investor confidence, particularly after a period where oil prices had been volatile due to the Trump administration's blockades of Iranian ports and Tehran's effective closure of the Strait of Hormuz, a crucial global energy artery.
Global markets react to geopolitical news.
Didier Marti | Getty Images
In Japan, the Nikkei 225 closed an impressive 3.14% higher at 61,684.14, propelled by stellar trade data. The nation's exports recorded their fastest growth this year since January, climbing 14.8% year-on-year in April, surpassing analyst estimates thanks to a substantial increase in semiconductor shipments. Imports also outperformed expectations, growing 9.7%.
Technology giants saw significant gains, with SoftBank Group shares skyrocketing nearly 20%. This surge followed Nvidia's blockbuster earnings report overnight, which underscored powerful momentum within the artificial intelligence sector.
South Korea's Kospi advanced a remarkable 8.42% to 7,815.59, while its small-cap counterpart, the Kosdaq, rose 4.7% to 1,105.97. Index heavyweights contributed significantly, with Samsung Electronics adding over 8.5% after a potential strike by more than 47,000 workers was averted through successful wage negotiations. SK Hynix also saw a substantial gain of 11.2%. Daniel Yoo, global strategist at Yuanta Securities (Korea), expressed bullish sentiment on CNBC's "Squawk Box Asia," forecasting the Kospi to reach 10,000 by year-end. Furthermore, South Korea is set to launch 24-hour dollar-won spot trading on July 6, a move aimed at bolstering its capital market and economic growth.
Australia's S&P/ASX 200 also posted solid gains, advancing 1.47% to 8,621.70.
However, not all markets followed suit, as China's CSI 300 reversed early gains to close 0.96% lower, and Hong Kong's Hang Seng Index fell 0.92%.
India's Nifty 50 saw a modest gain of 0.16%, with the BSE Sensex up 0.21%.
Oil prices, after a dip on Wednesday, trended higher. West Texas Intermediate futures climbed 1.23% to $99.47 per barrel in Asian trading, while Brent crude added 1.24% to reach $105.32 a barrel.
Looking to the U.S., futures indicated a cautious opening with the broad index futures slipping 0.3%, Nasdaq 100 futures losing 0.4%, and Dow Jones Industrial Average futures dropping 52 points, or 0.1%. This followed a strong previous day's close where the Dow Jones Industrial Average surged 645.47 points (1.31%) to 50,009.35, the S&P 500 rose 1.08% to 7,432.97, and the Nasdaq Composite added 1.54% to finish at 26,270.36.
— CNBC's Alex Harring and Spencer Kimball contributed to this report.
