Asian equities and government bonds surged Thursday after President Trump said U.S.-Iran negotiations were advancing, raising hopes for a deal to end the conflict. Japan's Nikkei Stock Average rose 3.3%, leading the regional rally as traders priced in a potential diplomatic breakthrough.

Three tankers passed through the Strait of Hormuz, a waterway that handles about one-fifth of the world's oil transport. The movement helped drive Wednesday's crude oil price decline and lifted market sentiment across asset classes.

Bond prices climbed alongside equities, reflecting risk appetite returning to Asia. Lower crude costs reduced energy-related pressure on regional economies, giving markets an additional tailwind beyond the diplomatic headlines.

The Nikkei's 3.3% gain marked the strongest daily advance in weeks, pointing to how quickly sentiment shifts when geopolitical risk appears to ease.