Asian stocks mostly higher after Wall Street hits record and oil rises

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HONG KONG (AP) — Asian stocks mostly gained while oil prices rose on Thursday as investors were closely watching prospects of a ceasefire extension in the Iran war and more talks between the U.S. and Iran.

Tokyo’s Nikkei 225 closed 2.4% higher at 59,518.34, reaching an all-time high and recovering from its earlier losses since the start of the Iran war. South Korea’s Kospi climbed 2.2% to 6,226.05.

Hong Kong’s Hang Seng rose 1.7% to 26,398.54, while the Shanghai Composite index was up 0.7% to 4,055.55. China on Thursday reported 5% economic growth for the January-March quarter, an acceleration from the previous quarter. While economists say China has largely shrugged off the initial impacts of the Iran war, some are warning its massive export engine could be hit more significantly in the coming months on slower global economic growth.

Taiwan’s Taiex traded 1.1% higher. Shares of chipmaker TSMC were up 0.2% ahead of its results announcement Thursday, which showed a 58% jump in profit, better than analysts had expected. Australia’s S&P/ASX 200 lost 0.3%.

On Wednesday, regional officials told The Associated Press that the U.S. and Iran had an “in-principle agreement” to extend a two-week ceasefire deal that is expiring next week and were making progress toward another round of talks.

But U.S. Treasury Secretary Scott Bessent also warned that Washington was preparing to apply secondary sanctions on those doing business with Iran – including potentially those from China that’s buying Iranian oil – in order to step up economic pressure on the country.

Oil gained early Thursday. Brent crude, the international standard, was up 1.6% to $96.44 per barrel. Benchmark U.S. crude, meanwhile, gained 1.4% to $92.58 a barrel.

Oil prices have surged since the Iran war began in late February. The Strait of Hormuz, a crucial waterway where roughly a fifth of the world’s oil passes through normally, has remained largely closed. The U.S. has imposed a sea blockade on Iranian ports this week to force Tehran to reopen the strait and to accept a deal.

“The key upside risk for the market is that peace talks between the US and Iran break down,” ING Bank strategists Warren Patterson and Ewa Manthey wrote in a note Thursday. “This isn’t an unrealistic scenario, given that US and Iranian demands remain fairly wide apart.”

On Wednesday, Wall Street hit a record on optimism over progress on a longer term ceasefire of the Iran war. The benchmark S&P 500 rose 0.8% to 7,022.95, eclipsing its prior all-time high set in January.

The Nasdaq composite gained 1.6% to 24,016.02, while the Dow Jones Industrial Average edged down 0.2% to 48,463.72.

Shares of Bank of America were 1.8% higher after the bank announced better-than-expected quarterly results and its CEO Brian Moynihan saw signs of a “resilient American economy” including solid spending by consumers. Shares of Morgan Stanley gained 4.5% also following better-than-expected quarterly results.

San Francisco-based shoe brand Allbirds’ share price ballooned 582% to nearly $17, after saying it’s shifting into artificial intelligence and would be changing its name to NewBird AI.

In other dealings, gold and silver prices were higher. Gold’s price climbed 0.3% on Thursday to $4,836.50 an ounce, while silver prices rose 0.6% to $80.14 per ounce.

The U.S. dollar fell to 158.92 Japanese yen from 159 yen. The euro was trading at $1.1788, down from $1.1799.