TOKYO: Japan's Nikkei share average shot to a record high on Thursday (May 7) as financial markets reopened after holidays, catching up with optimism over strong technology earnings and signs of a potential peace deal in the Middle East.

The benchmark Nikkei 225 Index rose 3.38 per cent to an all-time high of 61,523.36 in early trading. The broader Topix climbed 2.02 per cent to 3,803.95.

Japan's markets are also responding to a stronger yen since the last trading day on Friday, following bouts of suspected intervention by Tokyo to bolster the currency.

South Korea's benchmark Kospi index also opened at a fresh high after closing up more than 6 per cent on Wednesday.

Wall Street indexes hit record highs overnight as positive results from Advanced Micro Devices propelled euphoria over the red-hot artificial intelligence sector. Iran said it is reviewing a US proposal to end the more than two-month war, while President Donald Trump said the US has had very good talks with Tehran.