Asia-Pacific markets opened higher on Thursday, with traders balancing U.S. President Donald Trump's escalated rhetoric toward Iran against ongoing hopes for diplomatic resolution.
Despite Trump's warning that Iran could face 'bombing at a much higher level' if it failed to agree to a peace deal, sentiment in the region remained resilient.
The broader market reaction suggests investors are prioritizing economic fundamentals over geopolitical risks for now.
This follows a similar pattern seen earlier in the week, when markets also showed relative calm despite diplomatic setbacks between the U.S. and Iran.
Looking ahead, attention will shift to the U.S. Federal Reserve's decision on Wednesday night, which will follow the release of May inflation data.
Asian investors are closely watching for signals on the trajectory of U.S. monetary policy, which could influence regional market dynamics.