Asian stocks soared to record highs Thursday, with Japan's Nikkei crossing 62,000 for the first time, jumping 4.19% to 62,009.59. The broader Topix climbed 2.12% to 3,807.84.
South Korea's Kospi breached the historic 7,500 mark before pulling back, while MSCI's broadest index of Asia-Pacific shares outside Japan rose 1%, hitting another all-time high.
The rally was fueled by hopes for a US-Iran peace deal and strong earnings from tech companies like Advanced Micro Devices. A potential agreement sent oil prices sliding nearly 8% Wednesday, though Brent crude still traded near $102 a barrel, roughly 40% above pre-conflict levels.
The dollar index slipped to 98.032, while the yen held at 156.29 per dollar. The euro rose to $1.1747. Federal Reserve officials warned the war is raising risks of a sustained inflation shock due to high oil prices and supply chain concerns.
Iran said it's reviewing a peace proposal, but key US demands-suspending Iran's nuclear program and reopening the Strait of Hormuz-remain unresolved. OCBC analysts noted oil is likely to stay elevated even if the strait reopens.
Investors now await Friday's US non-farm payrolls report.