Most Asian markets relinquished early gains to close lower on Thursday, following reports that the U.S. had intercepted at least three Iranian oil tankers in Asian waters, heightening concerns that the Middle East conflict could persist. During the earlier part of the session, stocks in Japan and South Korea reached record highs, following the overnight gains observed on Wall Street. This uptick in investor sentiment was fueled by President Donald Trump’s extension of a ceasefire with Iran, coupled with robust corporate earnings reports. According to shipping and security sources on Wednesday, the U.S. military has intercepted a minimum of three tankers flying the Iranian flag in Asian waters, subsequently redirecting them from areas in proximity to India, Malaysia, and Sri Lanka. This development came after Iran’s navy announced the seizure of two container ships in the Strait of Hormuz. On Tuesday, Trump announced an extension of a two-week U.S. ceasefire, justifying the decision by referencing Tehran’s “seriously fractured” government. “Based on the fact that the Government of Iran is seriously fractured, not unexpectedly so and, upon the request of Field Marshal Asim Munir, and Prime Minister Shehbaz Sharif, of Pakistan, we have been asked to hold our Attack on the Country of Iran until such time as their leaders and representatives can come up with a unified proposal,” Trump stated in a Truth Social post.

The ceasefire will persist until Iran presents a proposal or negotiations are finalized, while the U.S. military maintains its blockade of Iranian ports, according to Trump. Nevertheless, the timeline continues to be ambiguous. Iranian state media reported Wednesday that Tehran’s negotiators have opted not to participate in discussions with the U.S., labeling them a “waste of time.” Reportedly, a lack of commitment from Iran has led Vice President JD Vance to suspend his trip to participate in peace talks. The West Texas Intermediate futures increased by 1.33%, reaching $94.20 per barrel as of 2:31 am. Meanwhile, Brent crude saw a rise of 1.21%, now priced at $103.50 per barrel. Japan’s Nikkei 225 concluded Thursday’s trading session down by 0.75%, settling at 59,140.23, following a brief moment where it reached an all-time intraday peak of 60,013.98 during early trading. In April, Japan’s manufacturing sector experienced its most rapid expansion in four years, as indicated by the S&P Global flash Purchasing Managers’ Index. This growth was driven by firms increasing output in response to supply concerns associated with tensions in the Middle East. Index heavyweight Softbank Group Corp experienced a closing increase of 3.86%, settling at 5,867.

A report indicated that the company is increasing its leverage in pursuit of AI, aiming for a $10 billion margin loan secured by its OpenAI assets. In early trading, South Korea’s Kospi achieved an unprecedented intraday peak of 6,538.72, ultimately closing 0.90% higher at 6,475.81. The small-cap Kosdaq experienced a decline of 0.58%, settling at 1,174.31.The economy of the country expanded beyond projections during the initial quarter of the year, achieving the most rapid growth since the third quarter of 2020. The growth of 1.7% from January to March surpassed estimates of 1.0% and marked a recovery from the 0.2% contraction observed in the preceding quarter. Samsung Electronics concluded the session with an increase exceeding 3%, following its shares reaching a new intraday peak of 227,000 during early trading. Investors were closely observing labor developments, with the company’s unions anticipating that over 30,000 workers would participate in a rally in South Korea on Thursday, in advance of a scheduled strike next month.

Australia’s S&P/ASX 200 exhibited volatility, declining 0.57% to 8,793.40. Mainland China’s CSI 300 index declined by 0.28%, settling at 4,786.33, whereas Hong Kong’s Hang Seng index experienced a decrease of 0.92% during its final trading hour. India’s Nifty 50 experienced a decline of 0.67% as of 3:40 am. S&P 500 futures declined by 0.1%, whereas Nasdaq 100 futures hovered near the flatline. Futures associated with the Dow Jones Industrial Average declined by 173 points, representing a decrease of 0.4%. During Wednesday’s regular session, the S&P 500 increased by 1.05% to close at 7,137.90, while the tech-heavy Nasdaq rose by 1.64% to conclude at 24,657.57. The latter reached a new all-time intraday high during the session. Meanwhile, the Dow Jones Industrial Average advanced 340.65 points, or 0.69%, to end the day at 49,490.03.