Global markets surged Thursday as optimism grew that the US and Iran were nearing a deal to end their conflict. Asian equities followed Wall Street's record highs, with futures for Hong Kong, Australia, and South Korea all rising. The improved sentiment came as Japan's markets reopened after a holiday, continuing the positive trend across global exchanges.

The S&P 500 climbed 1.5% while the Nasdaq 100 rose 2.1%, both hitting fresh records Wednesday. This healthy risk appetite extended to bond markets as investors welcomed signs that geopolitical tensions might ease. The rally reflects growing confidence that the prolonged conflict that has jolted markets and clouded the economic outlook could be approaching resolution.

Market participants closely monitor diplomatic developments between Washington and Tehran. Any formal agreement could further boost global markets by reducing uncertainty in oil supplies and enhancing regional stability. The rally suggests investors see resolution to the conflict as increasingly likely, with the potential for continued gains if talks progress successfully.