Kamal Ghorui
Asian stocks edged higher on Thursday, as investor sentiments were lifted by hopes of United States and Iran extending their ceasefire and moving a step closer to reopening the crucial Strait of Hormuz. The gains were led by Japan’s Nikkei, which was up 1,214 points or 2% to 59,348. In South Korea, Kospi jumped 1.7% to 6,195. Hang Seng Index of Hong Kong, followed the rally, adding, 360 points. Shanghai and Shenzhen were also trading in green, up 0.5% and 1%. Meanwhile, Singapore’s benchmark STI recorded a marginal dip, down 1 point as of 10:30 am IST.The broader rally across the region came after a strong session on Wall Street, where benchmark indices touched all-time highs. While S&P 500 closed above the 7,000 mark, Nasdaq ended higher than 24,000.Attention is pinned on diplomatic efforts to end the Middle East conflict, which is now nearing its seventh week. Officials from Washington and Tehran are expected to convene in Islamabad for a second round of talks, with both sides exploring a pathway to de-escalation.White House Press Secretary Karoline Leavitt said that further negotiations “would very likely” take place in the Pakistani capital. “Those discussions are being had,” she noted, adding that “we feel good about the prospects of a deal”.US Vice President JD Vance, who led the earlier round of negotiations, described the proposal on the table as a “grand bargain” aimed at ending the conflict.A Pakistani delegation has arrived in Tehran carrying a fresh communication from Washington, after US President Donald Trump indicated talks could restart this week. An Iranian foreign ministry spokesman said “several messages” had been exchanged through Islamabad since discussions concluded on Sunday.However, tensions have not eased entirely as Iran warned it could extend disruptions beyond the Gulf by shutting down the Red Sea and the Sea of Oman unless the United States removes a naval blockade imposed on its ports after last weekend’s failed negotiations.On the economic front, IMF Managing Director Kristalina Georgieva cautioned that “tough times ahead” could follow if the conflict continues and energy prices remain high, adding that inflation risks may begin to affect food costs.In commodities, oil prices remained largely unchanged and stayed below $100 per barrel, as traders continued to watch developments around the Strait of Hormuz, a crucial route for around a fifth of global oil and gas supplies that has effectively been closed by Iran.
