Japanese stocks climbed higher on renewed optimism surrounding a potential U.S.-Iran deal to reopen the Strait of Hormuz, with electronics shares leading the charge. The Nikkei Stock Average rose 2.3% to 65456.79 in early trading.

The dollar traded at 157.66 yen around 0014 GMT, slightly down from 157.69 yen at the previous Tokyo market close. Market attention remains focused on geopolitical developments after U.S. Treasury Secretary Scott Bessent indicated that a deal with Iran could be reached "today or tomorrow."

Investors are also keeping a close eye on Japanese corporate earnings, which continue to influence market sentiment alongside the ongoing Middle East developments.