Asia Markets Rally as U.S. Extends Iran Ceasefire Amid Diplomatic Friction

Asia-Pacific markets tracked a positive lead from Wall Street on Thursday, buoyed by the extension of a U.S. ceasefire with Iran and a string of strong corporate earnings. The shift in sentiment follows a decision by President Trump to prolong a two-week ceasefire, citing a "seriously fractured" Iranian government as the primary justification. The extension was reportedly requested by Pakistani leadership and will remain in effect until Tehran submits a unified proposal or diplomatic discussions conclude. Despite the ceasefire, the U.S. military will continue its blockade of Iranian ports, maintaining strategic pressure on the region. However, the diplomatic outlook remains fragile. Iranian state media has dismissed potential talks as a "waste of time," which prompted Vice President JD Vance to postpone a planned trip for peace negotiations. Adding to the volatility, the Iranian navy reported the seizure of two container ships in the Strait of Hormuz, highlighting the persistent risks in key shipping lanes. The geopolitical relief contributed to a strong session in the U.S., where the Nasdaq 100 hit a new all-time intraday high and the S&P 500 climbed 1.05% to close at 7,137.90. In Asia, South Korea's Kospi surged 1.33%, further supported by Q1 GDP growth of 1.7%, which significantly exceeded the 1.0% forecast. Energy markets saw a slight cooling as immediate war premiums eased. West Texas Intermediate (WTI) dipped 0.14% to $92.83 per barrel, while Brent crude fell 0.17% to $101.74.