Asian stocks advanced on Thursday after U.S. jobs and services data beat forecasts, and reports emerged that Tehran is willing to talk with to talk on ending the war.
However, Iranian officials reportedly denied the reports about cease-fire talks.
Gold prices were half a percent higher at $5,165 an ounce in Asian trade as the dollar held steady after coming under selling pressure in the previous session.
Oil prices jumped more than 3 percent after the United States submarine sank an Iranian warship off the southern coast of Sri Lanka.
In a Pentagon briefing, U.S. Defense Secretary Pete Hegseth said the strike on the warship was the first such attack on an enemy since World War II.
China's Shanghai Composite index rose 0.64 percent to 4,108.57 after China vowed to accelerate its push for tech self-reliance and unveiled plans to inject 300-billion yuan ($44bn) into state-owned banks this year to guard against systemic risks.
Hong Kong's Hang Seng index ended up 0.28 percent at 25,321.34, paring early gains.