Asian Markets Reach New Heights as US-Iran Ceasefire Extension Sparks Global Optimism

Asian Markets Trade Higher Amid US Earnings and Iran Ceasefire

Asian markets mostly traded higher on Thursday, 23 April, following overnight gains in US markets. Investor sentiment was boosted by US President Donald Trump's extension of the Iran ceasefire, along with strong corporate earnings.

In Japan, the Nikkei 225 hit an all-time high of 60,013.98, led by robust buying in technology stocks. SoftBank Group Corp jumped more than 6%, while Mitsubishi Heavy Industries rose 1.86%. South Korea's Kospi also reached an all-time high of 6,538.72, climbing 1.75%, while the small-cap Kosdaq index edged up 0.58%. The country's economy expanded faster than expected in the first quarter, marking its strongest growth since the third quarter of 2020.

Meanwhile, shares of Samsung Electronics reached a new intraday record of 227,000. Investors kept a close watch on labour developments, as over 30,000 workers were expected to participate in a rally ahead of a planned strike next month.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

In Australia, the S&P/ASX 200 traded in a volatile range, ending slightly higher by 0.32%, on Thursday. Hong Kong's Hang Seng index futures stood at 26,169, nearly unchanged from the previous close of 26,163.24, with investors awaiting the release of March inflation data for further cues.

Back home, trends in the Gift Nifty signalled a negative start to the Indian stock market. The index was trading 111 points or 0.46% down to 24,253 as compared to the previous close of 24,364.

US-Iran War Update

US President Donald Trump on Tuesday extended the US ceasefire by two weeks, stating the decision was justified given Tehran's "deeply fractured" government. The ceasefire would remain in place until Tehran presented a proposal or negotiations concluded, while the US military would maintain its blockade of Iranian ports.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

However, the timeline remains unclear. Iranian state media reported on Wednesday that Tehran's representatives would not participate in the talks with the US, dismissing them as a "waste of time." Reports suggest Iran's lack of commitment also led Vice President JD Vance to halt his trip for the peace discussions. At the same time, Iran's navy announced it had seized two container ships in the Strait of Hormuz.

US Stock Market Today

Futures for the S&P 500 edged down 0.1%, while Nasdaq 100 futures hovered near flat. Meanwhile, futures linked to the Dow Jones Industrial Average declined by 173 points, or 0.4%.

On Wednesday, the Dow Jones Industrial Average rose 340.65 points, or 0.69%, to close at 49,490.03. Meanwhile, the S&P 500 advanced 73.89 points, or 1.05%, to 7,137.90, and the Nasdaq Composite climbed 397.60 points, or 1.64%, to settle at 24,657.57.

Robust corporate earnings, a renewed surge in the artificial intelligence trade, and a generally resilient economy have supported stock markets despite ongoing geopolitical uncertainties. According to Bloomberg data, nearly 80% of S&P 500 companies that have reported first-quarter results so far have exceeded analysts' earnings expectations.