Asia markets advance on peace deal hopes, corporate earnings

SINGAPORE - Stocks pushed higher in early Asia trading on Thursday as optimism grew about a deal to end the Iran war with the US ratcheting up pressure on Tehran, while traders prepared for a raft of economic data and critical earnings reports.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3%, putting the benchmark on track for a third consecutive day of gains, while Japan's Nikkei rose 1.5%. S&P 500 e-mini futures nudged 0.1% higher.

Overnight, the S&P 500 was up 0.8% and the Nasdaq Composite gained 1.6%, as strong quarterly earnings from Bank of America and Morgan Stanley lifted the indexes to record highs. With around 6% of companies reporting earnings for the quarter, 84% have beaten analysts' expectations.

"We remain constructive overall" on emerging market stocks as "underlying profit growth is likely to be strong," analysts from Goldman Sachs wrote in a research report.

Earnings in the region will be "driven by AI-related demand, which should be relatively insulated from the direct impacts of the oil shock."

Economic data due for release include Australian jobs numbers and Chinese GDP. Taiwan Semiconductor Manufacturing Co (TSMC), a linchpin of the AI sector, is set to post quarterly earnings, with a 50% surge in net profit expected as demand for its advanced chips soars.

In oil markets, Brent crude opened 0.4% lower at USD 94.55 a barrel after a source briefed by Tehran told Reuters that Iran could consider allowing ships to sail freely through the Omani side of the Strait of Hormuz without risk of attack as part of proposals it has offered in negotiations with the United States.

Gold clawed back 0.8% to USD 4,829.24, while in cryptocurrencies, bitcoin was flat at USD 74,832.83 and ether slid 0.1% to USD 2,360.71.

(Reporting by Gregor Stuart Hunter; Editing by William Mallard)