TOKYO, May 21, 2026 (BSS/AFP) - Japan's Nikkei index jumped more than three percent in early Asian trade Thursday after Iran said it was examining a new US proposal to end the Middle East war.

At around 0030 GMT the Nikkei 225 was up 3.20 percent before easing slightly.

South Korea's benchmark Kospi index soared 5.42 percent, also helped by renewed negotiations between Samsung Electronics' management and workers' union that averted a strike called for Thursday.

President Donald Trump described on Wednesday the talks as being on the "borderline" between a deal and renewed strikes.

Cautious hopes rippled quickly through financial markets. Oil prices fell more than five percent Wednesday, while US stocks rose, though analysts warned investors remained wary after weeks of false starts.

Trump, who said earlier that negotiations were in their "final stages," later warned that the window for diplomacy could close quickly.

Iranian foreign ministry spokesman Esmaeil Baqaei said Tehran had "received the points of view of the American side" and was examining them.

Overnight gains of US shares, hopes for the end of the war in Iran and drops of oil prices were among factors that cheered Tokyo investors, said brokerage house Monex.

"Following the upward trend in the US market", the Japanese market was expected to open with "buying activity dominating today", it said.