CANBERA (dpa-AFX) - Asian markets are a sea of green on Thursday, following the broadly positive cues from Wall Street overnight, with the Japanese markets surging in post-holiday trading, amid optimism over a potential U.S.-Iran peace deal and the related easing of crude oil prices and concerns about global inflationary pressures. The two sides are nearing a one-page, 14-point memorandum of understanding to end the war, while establishing a framework for more detailed nuclear talks. Asian markets closed mostly higher on Wednesday.
Tehran said it was reviewing the latest peace proposal and exchanging diplomatic messages via mediator Pakistan.
Adding to the optimism about a peace deal, US President Donald Trump said the U.S. would pause its efforts to escort ships through the Strait of Hormuz to see whether or not the agreement can be finalized and signed.
The conflict between the U.S. and Iran that began on February 28, currently under ceasefire for an indefinite period, has left the Strait of Hormuz effectively shut.
The Australian market is trading significantly higher on Thursday, extending the gains in the previous session, following the broadly positive cues from Wall Street overnight. The benchmark S&P/ASX 200 is moving above the 8,850 level, with gains in mining and financial stocks partially offset by weakness in energy and technology stocks.
The benchmark S&P/ASX 200 Index is gaining 76.10 points or 0.87 percent to 8,869.70, after touching a high of 8,887.90 earlier. The broader All Ordinaries Index is up 80.70 points or 0.90 percent to 9,096.80. Australian stocks ended sharply higher on Wednesday.
Among major miners, Rio Tinto and Fortescue are adding more than 2 percent each, while BHP Group and Mineral Resources are gaining more than 3 percent each.
Oil stocks are mostly lower. Beach energy and Santos are losing more than 2 percent each, while Woodside Energy is advancing more than 4 percent and Origin Energy is down almost 1 percent.
In the tech space, Afterpay owner Block is edging down 0.2 percent, WiseTech Global is losing more than 1 percent and Xero is slipping almost 2 percent, while Zip is gaining more than 3 percent and Appen is advancing almost 3 percent.
Among the big four banks, Commonwealth Bank is gaining more than 1 percent, Westpac is adding more than 2 percent, ANZ Banking is up almost 1 percent, while National Australia Bank is edging down 0.1 percent.
Among gold miners, Northern Star Resources is gaining almost 3 percent, Newmont is adding more than 2 percent and Genesis Minerals is surging almost 5 percent, while Evolution Mining and Resolute Mining are jumping more than 4 percent each.
In other news, shares in Tabcorp are plunging almost 22 percent on reports of being investigated by AUSTRAC over 'serious concerns' relating to its ability to effectively identify, mitigate and manage money laundering and terrorism financing risks.
Shares in Light & Wonder are tumbling almost 10 percent after the gaming technology company reported mixed first-quarter result.
In the currency market, the Aussie dollar is trading at $0.724 on Thursday.
The Japanese market is sharply higher in post-holiday trading on Thursday, extending the gains in the previous session, following the broadly positive cues from Wall Street overnight. The Nikkei 225 is surging 5.7 percent to above the 62,900 level, with gains in across most sectors led by index heavyweights and technology stocks.
The benchmark Nikkei 225 Index closed the morning session at 62,915.87, up 3,402.75 points or 5.72 percent, after touching a high of 62,922.26 earlier. Japanese stocks ended modestly higher on Friday ahead of the holidays on Monday, Tuesday and Wednesday.
Market heavyweight SoftBank Group is soaring more than 13 percent and Uniqlo operator Fast Retailing is gaining more than 2 percent. Among automakers, Toyota is gaining almost 1 percent, while Honda is losing almost 1 percent.
In the tech space, Advantest is soaring almost 8 percent, Tokyo Electron is surging more than 8 percent and Screen Holdings is jumping more than 7 percent.
In the banking sector, Sumitomo Mitsui Financial, Mizuho Financial and Mitsubishi UFJ Financial are gaining more than 2 percent each.
Among the major exporters, Mitsubishi Electric is surging more than 8 percent and Panasonic is gaining almost 1 percent, while Canon and Sony are edging up 0.3 to 0.4 percent each.
Among other major gainers, Ibiden and Mitsui Kinzoku are soaring more than 16 percent each, while Renesas Electronics is jumping more than 13 percent each, while Ebara, Tosoh and Sumitomo Electric Industries are surging more than 11 percent each. Seiko Epson and Furukawa Electric are advancing more than 10 percent each, while Resonac Holdings is gaining almost 10 percent and Amada is adding almost 9 percent. Fujikura and Shin-Etsu Chemical are adding more than 8 percent each.
Conversely, M3 is tumbling almost 8 percent and Inpex is slipping almost 6 percent, while Marubeni and Mitsui & Co. are declining almost 5 percent each. Daiichi Sankyo, Sumitomo Pharma and Chugai Pharmaceutical are losing more than 4 percent each, while Sojitz and ZOZO are declining almost 4 percent each. Oriental Land, DeNA and Nintendo are down almost 3 percent each.
In economic news, the monetary base in Japan was down 11.3 percent on year in April, the Bank of Japan said on Thursday - coming in at 570.787 trillion yen. That missed expectations for a decline of 10.5 percent following the 10.6 percent drop in March. The adjusted monetary base shed 5.6 percent on year to 577.319 trillion yen.
Banknotes in circulation were down 1.8 percent, while coins in circulation fell 1.1 percent. Current account balances tumbled an annual 13.5 percent, including a 12.0 percent drop in reserve balances.
Meanwhile, members of the Bank of Japan's Monetary Policy Board said that the main risk to the country's growth is the future course of events in the Middle East, minutes from the bank's March 18-19 meeting revealed on Thursday. At the meeting, the BoJ maintained its interest rate at around 0.75 percent, citing risks to the inflation outlook - especially to crude oil - due to the ongoing conflict in the Middle East.
In the currency market, the U.S. dollar is trading in the lower 156 yen-range on Thursday.
Elsewhere in Asia, Hong Kong and Indonesia are up 1.3 percent each, while Taiwan is up 2.1 percent. New Zealand, China, Singapore, South Korea and Malaysia are higher by between 0.2 and 0.9 percent each.
On Wall Street, stocks moved sharply higher early in the session on Wednesday and saw further upside as the day progressed. The major averages added to the gains posted during Tuesday's session, with the Nasdaq and S&P 500 reaching new record closing highs.
The major averages ended the day just off their highs of the session. The Nasdaq surged 512.82 points or 2 percent to 25,838.94, the S&P 500 shot up 105.90 points or 1.5 percent to 7,365.12 and the Dow jumped 612.34 points or 1.2 percent to 49,910.59.
The major European markets also showed strong moves to the upside on the day. While the French CAC 40 Index surged by 2.9 percent, the U.K.'s FTSE 100 Index is up by 2.1 percent and the German DAX Index shot up by 2.2 percent and 2.1 percent, respectively.
Crude oil prices went into freefall after Trump indicated the U.S. and Iran may reach a deal soon. West Texas Intermediate crude for June delivery was down $7.83 or 7.66 percent at $94.44 per barrel.
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