Easing tensions in Iran drive Asia-Pacific stock markets higher; the Nikkei surpasses 62,000 for the first time, reaching a record high.

The hope of ending the US-Iran war is expected to boost global risk appetite, combined with US stocks closing at historic highs on Wednesday. The Asia-Pacific markets broadly rose on Thursday, with Japan leading the gains after returning from holiday.

According to CCTV News, US sources indicated that on the 6th, a Pakistani source said the United States and Iran are close to reaching a memorandum of understanding aimed at ending the war. The memorandum is intended to end the conflict and set a framework for more detailed nuclear negotiations.

This diplomatic progress has directly warmed up global market sentiment. On Thursday, the Japanese stock market made a strong comeback after the holiday break.

The Nikkei 225 index surged 5%, breaking through the 62,000 mark for the first time. The MSCI Pacific Index similarly jumped over 2%.

While the Nikkei 225 hit a record high, the TOPIX index also soared by 2.37%.

The gains on the Japanese stock market were broad-based across sectors, with sectors such as basic materials, technology, and financials performing particularly well. Index heavyweight SoftBank Group jumped over 13%, becoming the market focus.

Electronics component maker Ibiden led individual stocks with a 17.5% rise, Mitsubishi Materials climbed 16%, Renesas Electronics up 13%, and Tosoh, a chemicals and materials company, rose 12%.

Japan’s significant catch-up rally this time is different from other markets. During its holiday closure, US stocks had already reflected improved risk appetite brought by expectations of easing US-Iran tensions. Japan's concentrated catch-up amplified the day’s gains to some extent.

The South Korean market, however, showed divergence. The KOSPI initially rose about 2% in early trading, then quickly reversed to a drop of 1%.

Samsung Electronics and SK Hynix both rose about 3% in early trading, but failed to hold their gains.

During Thursday's Asia-Pacific session, Brent crude stabilized somewhat after nearly an 8% plunge on Wednesday, while WTI crude prices rose about 0.61%, with the market showing high volatility.

The US 10-year Treasury yield stayed roughly flat at 4.34%.

The Bloomberg Dollar Spot Index showed limited movement. As for the yen, the dollar/yen stabilized above 156 in early Thursday trading. The previous session saw the yen strengthen amid speculation of potential intervention by Japanese authorities. Thursday overall remained steady.

Spot gold strengthened slightly, rising 0.45% and holding above $4700.

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