Asian Stocks Surge on Hormuz Reopening Hopes

Asian stock markets surged and crude oil prices held above $100 a barrel on Thursday as investors anticipated a potential U.S.-Iran agreement to reopen the Strait of Hormuz to oil tankers blocked by ongoing conflict.

Japan's Nikkei 225 index rose 4.6 percent to 62,243.88. Hong Kong's Hang Seng gained 1.2 percent to 26,531.35, while Australia's S&P/ASX 200 climbed 1.2 percent to 8,870.90. Taiwan's Taiex advanced 1.7 percent. South Korea's Kospi fell 1.4 percent to 7,281.37 as traders took profits following a nearly 7 percent jump the previous day that pushed it above 7,000 for the first time.

The optimism stemmed from comments by President Donald Trump, who stated the Strait of Hormuz could be "OPEN TO ALL" if Iran accepts a reported agreement, the details of which he did not specify. He also warned of bombing at a "much higher level and intensity" if Iran refuses.

U.S. markets rallied sharply Wednesday on the news, with the S&P 500 climbing 1.5 percent, or 105.90 points, to a record 7,365.12 in its best day in nearly a month. The Dow Jones Industrial Average increased 1.2 percent, or 612.34 points, to 49,910.59. The Nasdaq composite rose 2 percent, or 512.82 points, to 25,838.94.