Japan’s Nikkei Nikkei 225 jumped 1.4%, while South Korea’s KOSPI rose 1.1%

Japanese and South Korean stock markets rose in thin holiday trading on Monday, as investors weighed a report saying that the U.S., Iran, and other mediators were discussing terms for a potential 45-day ceasefire.

Trading volumes were subdued because markets in Hong Kong, mainland China, and Australia were closed for holidays.

U.S. stock futures were largely unchanged in Asian trading on Monday, trimming earlier losses on hopes of an Iran ceasefire.

Japan’s Nikkei Nikkei 225 jumped 1.4%, while the broader TOPIX index added 0.7%.

South Korea’s KOSPI rose 1.1%.

Sentiment improved after an Axios report said the US, Iran, and regional mediators were discussing terms for a potential 45-day ceasefire that could eventually lead to a broader deal to end the war.

The report said intermediaries were involved, although chances of securing even a partial agreement within the next 48 hours remained uncertain.

The diplomatic push came after U.S. President Donald Trump said Iran had until Tuesday evening to reopen the Strait of Hormuz or face attacks on critical infrastructure.

Trump said the deadline would expire at 8 p.m. Eastern Time (1:00 AM GMT) on Tuesday and warned that Iranian power plants and bridges could become targets if shipping through the strait was not restored.

Oil prices rose again in Asian trade after surging late last week, but tempered some gains after the Axios report.

Higher crude prices threaten to lift import costs for Asian countries heavily dependent on energy imports.

Elsewhere in Asia, Singapore’s Straits Times Index added 0.3%.

India’s Nifty 50 slid 0.4%, bucking the regional trend.