Asian Markets Surge Amid Optimism for Iran Deal and Earnings Boost

Asian stocks climbed on Thursday, buoyed by optimism for a resolution to the US-Iran conflict and strong earnings reports. The MSCI Asia-Pacific index rose, with Japan's Nikkei setting a new record. Positive earnings from US banks and anticipated profits in the AI sector further fueled market enthusiasm.

Asian markets saw significant gains on Thursday, driven by growing hopes for a resolution to the ongoing conflict between the US and Iran. The MSCI Asia-Pacific index, excluding Japan, rose by 0.9%, while Japan's Nikkei hit a fresh record with a 2.2% increase.

Investors remained optimistic about emerging market stocks, as analysts pointed to potential profit growth driven by AI-related demand. On Wednesday, strong earnings from Bank of America and Morgan Stanley propelled US markets to new highs, with 84% of reporting companies surpassing expectations.

In the tech sector, Taiwan Semiconductor Manufacturing Co is expected to report a 50% surge in quarterly profits. Meanwhile, oil prices increased slightly, and geopolitical tensions eased, contributing to a steady performance of the US dollar index. Overall, global markets remain cautiously optimistic as companies report strong fundamentals.

(With inputs from agencies.)