Aerial view of Mt. Fuji, Tokyo Tower and modern skyscrapers in Tokyo on a sunny day.

Yongyuan | E+ | Getty Images

Japan stocks rose more than 4% on Thursday, with the benchmark Nikkei 225 hitting 62,000 for the first time as Asia-Pacific markets rallied despite renewed tensions in the Middle East.

The broader regional advance came after President Donald Trump warned Iran would be bombed "at a much higher level" if it failed to agree to a peace deal.

The Nikkei 225 advanced 4.18%, led by gains in basic materials, technology and financial stocks. Shares of index heavyweight Softbank surged more than 10%. The Topix added 1.91%.

In Australia, the S&P/ASX 200 rose 0.9%.

South Korea's Kospi added 1.17% while the small-cap Kosdaq Index slid 0.4%.

Trump's fresh threats came as reports suggested Washington and Tehran were nearing an agreement to end the war.

The president in a Truth Social post said the U.S.…