Japanese stocks rallied at Thursday's opening bell after a three-day holiday, fueled by speculation that the U.S. and Iran are nearing a framework deal to end the conflict that has rattled global markets and darkened economic outlook.
The Nikkei 225 jumped by 728.2 points, or 1.2%, to open at 60,241.31.
Washington has put forward a one-page memorandum of understanding designed to phase in the reopening of the strategically vital Strait of Hormuz and lift the American naval blockade on Iranian ports, Bloomberg News reported on Thursday.
The report added that detailed talks on Iran's nuclear program would come later, with no formal agreement having been reached yet.
The diplomatic move follows Trump's decision to suspend a brief US naval mission that had aimed to secure safe passage for commercial ships through the strait, a vital route for global oil and gas.
Markets are now awaiting Tehran's official response, with energy and equity sectors closely monitoring for any signs of de-escalation.