Nikkei 225 hits record high as Asian markets rally on risk-on mood

Asian markets opened higher on Thursday as optimism over a possible US-Iran deal extended the risk-on mood from Wall Street, where the S&P 500 and Nasdaq closed at record highs.

The shift from “set to rise” to actual gains matters because it confirms investors are acting on improving sentiment rather than merely signalling intent ahead of the open.

Japan led gains in Asia, with the Nikkei 225 touching fresh record highs and rising 0.81%, while the broader Topix added 0.70%.

South Korea also saw strong momentum, as the Kospi climbed 1.03% and the Kosdaq advanced 0.77%.

Australia’s S&P/ASX 200 was also higher, up 0.22%, and Hang Seng futures pointed to a firmer start in Hong Kong, at 26,129 against the previous close of 25,947.32.

Peace hopes and oil set the tone

The market’s main support remained the prospect of a diplomatic breakthrough between Washington and Tehran.

President Donald Trump said in a Fox Business interview broadcast on Wednesday that the conflict was “very close to over” and repeated his view that Iran wanted to “make a deal very badly.”

That has helped ease pressure on oil.

As of Thursday, West Texas Intermediate crude was trading around $91 a barrel, while Brent crude hovered near $94.60, as easing geopolitical tensions kept prices in check.

Lower oil prices have given equity investors more room to take on risk, especially after days in which the conflict fueled fears of tighter supply, higher inflation, and slower global growth.

Wall Street records strengthen the lead

Asian equities were also drawing confidence from another strong US session.

On Wednesday, the S&P 500 rose 0.80% to 7,022.73, the Nasdaq Composite jumped 1.59% to 24,016.02 and the Dow Jones Industrial Average slipped 72 points, or 0.15%, to 48,463.72.

Both the S&P 500 and Nasdaq finished at record highs, with the Nasdaq posting its 11th straight gain and the S&P recording its 10th positive close in 11 sessions.

That matters because it reinforces the sense that investors are willing to look through geopolitical stress if corporate earnings and lower oil prices continue to provide support.

Earlier optimism had been driven in part by bank earnings, and the latest Wall Street gains suggest that appetite for equities remains intact even as diplomacy around Iran is still tentative.

Regional focus now shifts to follow-through

With markets already open, the next question is not whether Asia can rally but whether the gains broaden and hold through the session.

Japan and South Korea have provided the early leadership, while Hong Kong’s implied openness suggests investors there may also join the move if sentiment remains firm.

For the rest of the day, traders are likely to continue monitoring three key variables.

The first is whether oil stays under pressure, because that would help preserve the market’s improving tone.

The second is whether any fresh headlines on US-Iran talks emerge, given that current optimism still rests on negotiations that have not yet been formally scheduled.

The third is whether the rally keeps rotating into technology and export-heavy names, which would signal stronger conviction behind the move.

Outlook

For now, the copy should move away from a pre-open framing and reflect a market that is already trading higher.

The tone is constructive, with Asia following Wall Street’s record-setting lead, but the advance still depends heavily on diplomacy holding together and oil failing to re-ignite inflation fears.