Asian Markets Surge to Record Peaks Following Trump's Iran Ceasefire Extension

Equity markets in Japan and South Korea reached unprecedented heights on Thursday, mirroring overnight rallies on Wall Street as President Donald Trump's decision to extend a ceasefire with Iran bolstered investor confidence alongside positive corporate earnings announcements.

Ceasefire Extension

On Tuesday, Trump announced the prolongation of a two-week cessation of hostilities with Iran, attributing the move to the Islamic Republic's internal political instability. In a statement posted on Truth Social, the U.S. leader explained the reasoning behind the decision:

"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."

According to Trump's statement, the truce would remain in effect until Tehran submits a comprehensive proposal or negotiations conclude, with the U.S. military maintaining its economic blockade of Iranian ports. However, prospects for dialogue appear dim, as Iranian state media reported that Tehran's negotiating team would not participate in talks with Washington, dismissing them as futile. This apparent lack of engagement prompted Vice President JD Vance to defer his planned participation in peace discussions. Additionally, the Iranian navy announced the confiscation of two container vessels transiting the Strait of Hormuz.

Energy Markets

Oil futures gained modestly in response to the geopolitical developments. West Texas Intermediate crude climbed 0.22% to $93.2 per barrel as of 8:34 p.m. ET, while Brent crude advanced 0.39% to $102.25 per barrel.

Asian Market Performance

Japan

Japan's premier Nikkei 225 index achieved an all-time intraday peak of 60,013.98, propelled primarily by robust technology sector performance. SoftBank Group Corporation surged over 6%, while Mitsubishi Industries gained 1.86%.

South Korea

South Korea's Kospi index also reached an all-time intraday record of 6,538.72, advancing 1.75%. The secondary Kosdaq index climbed 0.58%. The nation's economic expansion during the first quarter exceeded analyst projections, expanding 1.7% sequentially—substantially above the Reuters consensus estimate of 1.0% and representing the strongest performance since the third quarter of 2020, rebounding from a 0.2% contraction in the preceding quarter.

Samsung Electronics achieved a new intraday high of 227,000 won. Market participants are closely monitoring labor relations developments, as the company's union organizations anticipate drawing more than 30,000 workers to a demonstration in South Korea on Thursday, preceding an anticipated labor action scheduled for the following month.

Other Regional Markets

Australia's S&P/ASX 200 traded with volatility but still gained 0.32%. Hong Kong Hang Seng index futures stood at 26,169, compared to the underlying index's previous close of 26,163.24. Investors will closely monitor the publication of Hong Kong's March inflation statistics.

U.S. Market Developments

U.S. equity futures displayed mixed signals heading into the trading session. S&P 500 futures declined marginally by 0.1%, while Nasdaq 100 futures held essentially flat. Dow Jones Industrial Average futures slipped 173 points, representing a 0.4% decrease.

During Wednesday's regular trading session, U.S. indices delivered broad-based gains. The S&P 500 appreciated 1.05%, closing at 7,137.90. The technology-focused Nasdaq climbed 1.64% to settle at 24,657.57, marking a new all-time intraday high during the session. The Dow Jones Industrial Average advanced 340.65 points, or 0.69%, concluding at 49,490.03.

CNBC contributors Sean Conlon and Lisa Kailai Han contributed reporting to this story.