Asian equities looked set to extend gains Thursday, building on positive momentum from Wall Street. Investors monitored US-Iran ceasefire talks as a potential catalyst for regional stability, with markets responding to improved sentiment in both US stocks and bonds the previous session.

Traders carefully assessed the viability of diplomatic efforts between Washington and Tehran, recognizing any breakthrough could ease Middle East tensions and potentially impact oil markets. The cautious optimism reflected in Asian trading suggested investors remained hopeful progress could be made despite persistent geopolitical uncertainties affecting global market sentiment.

The regional market movements underscored how Asian equities often follow US leads while maintaining distinct sensitivities to political developments. Market participants continued balancing positive economic signals against ongoing geopolitical risks that could disrupt the current market trajectory, with many watching for concrete outcomes from diplomatic negotiations.