Asian markets remained steady Thursday as investors digested the signing of an interim peace agreement between the United States and Iran. The deal extends the current ceasefire by sixty days to facilitate negotiations for a final truce, though President Donald Trump warned of resumed military action if commitments are violated.
Oil prices retreated on the geopolitical de-escalation. U.S. crude dipped 1.25 percent to $75.83 per barrel, while Brent crude fell 1.4 percent to $78.41. Lower energy costs have begun to ease economic slowdown concerns in Europe, with the International Energy Agency projecting a significant supply surplus by 2027.
Japan’s Nikkei index surged past 71,000 for the first time, driven by semiconductor and AI sector gains. South Korean shares also advanced. Conversely, U.S. stock futures rose despite overnight losses on Wall Street, where major indexes dropped over one percent amid expectations that Federal Reserve Chair Kevin Warsh will prioritize taming inflation through higher interest rates.
Currency markets saw the dollar strengthen against the yen, reaching its highest level since July 2024. Benchmark Treasury yields edged higher as traders priced in potential rate hikes later this year. Spot gold traded near $4,310 per ounce, while Bitcoin and Ethereum posted marginal gains.