Asian stocks rise as earnings beat expectations, Iran war talks ease concerns

Asian equities advanced early Thursday as investors leaned into a softer risk backdrop, stronger corporate earnings and hopes that talks to ease the Iran conflict could take some pressure off energy prices and global growth. MSCI’s broadest Asia-Pacific index outside Japan rose 0.3%, putting it on course for a third straight gain, while Japan’s Nikkei climbed 1.5% and U.S. S&P 500 e-mini futures edged 0.1% higher.

The tone followed a strong overnight session in New York, where the S&P 500 gained 0.8% and the Nasdaq jumped 1.6% to records. Bank of America reported first-quarter 2026 results on April 15, and Morgan Stanley beat Wall Street expectations for first-quarter profit as equities trading revenue hit a record, helping drive its shares up 5%. With about 6% of companies having reported so far, 84% were beating analysts’ forecasts, giving the market a concrete earnings base beneath the recent optimism.

That earnings support mattered because the geopolitical backdrop remained fragile. Traders were watching developments around the Strait of Hormuz, a critical global shipping route where any disruption can quickly spill into oil, transport and inflation expectations. Brent crude opened lower after a Reuters source said Iran could consider allowing ships to travel freely through the Omani side of the strait without attack risk as part of proposals to the United States, a sign that even tentative diplomatic headlines were enough to move energy markets.

The data flow out of Asia also helped shape the session. Australia’s March labor-force figures showed unemployment steady at 4.3% and employment up 17,900, reinforcing the view that the labor market remained tight even as the Middle East conflict threatened to lift fuel costs. China’s first-quarter GDP rose 5% from a year earlier, above many forecasts, though the conflict has darkened the outlook by raising energy costs and cooling global demand.

Attention was also turning to Taiwan Semiconductor Manufacturing Co., which is central to the artificial intelligence supply chain. It was expected to report a 50% surge in January-March net profit and a fourth consecutive quarter of record earnings, underscoring how powerful the AI investment cycle remains. If those results confirm robust demand, the market could read them as evidence that profits are still doing the heavy lifting, even as hopes for de-escalation in Iran keep sentiment elevated.