Asian stocks surged to record highs on 7 May as investors priced in growing hopes of a potential Middle East peace deal, while oil prices eased and the U.S. dollar weakened amid shifting global risk sentiment.
Japan’s Nikkei 225 crossed the 62,000 level for the first time after reopening from a holiday, extending a technology-led rally supported by strong corporate earnings.
South Korea’s KOSPI and Taiwan’s Taiwan Weighted Index also hit record highs.
The broader MSCI Asia-Pacific index excluding Japan rose around 1%, marking another all-time high and extending gains for the week.
Kyle Rodda, Senior Financial Analyst at Online Trading said she was being cautious.
"But we've seen this story before, and the rug could get pulled out of the market pretty quickly too. Ultimately, if we keep seeing progress in talks, Asian markets will keep rallying."
Investor sentiment improved after reports that Iran was reviewing a peace proposal linked to efforts to end the ongoing conflict and stabilise energy flows through the Strait of Hormuz.
Analysts, however, warned that uncertainty remains over whether key issues - including Iran’s nuclear programme and the reopening of the strategic waterway - can be resolved.
Oil prices, which had fallen nearly 8% in the previous session, steadied in early Asian trade but remained volatile after recent swings driven by conflict risks.
Oil, inflation and policy risks
Brent crude oil traded slightly higher at around $102 a barrel, still well above levels seen before the conflict began.
The war, which began in February, has pushed oil prices roughly 40% higher overall, adding pressure to global inflation and bond yields.
U.S. Federal Reserve officials have warned that sustained high energy prices could fuel inflationary pressures and strain global supply chains.
Analysts from Oversea-Chinese Banking Corporation (OCBC) noted that the reopening of the Strait of Hormuz would not have an immediate effect on the prices.
In currency markets, the dollar index slipped to 98.03 as the euro and sterling extended gains.
The Japanese yen remained in focus after sharp moves in recent sessions, with traders speculating about possible intervention by Japanese authorities amid volatility.
According to OCBC analysts, the main question is whether the Ministry of Finance will continue to defend the yen or has already deployed sufficient firepower.
"Intervention alone is unlikely to shift the broader trend unless backed by stronger policy support like a more assertive BOJ (Bank of Japan) hiking cycle or better alignment with external drivers such as lower oil prices and U.S. yields," the analysts stated, sticking to their year-end target of 155.
On Wall Street, both the S&P 500 and the Nasdaq Composite closed at record highs, supported by strong corporate earnings, particularly in the technology sector.
Investors are now awaiting U.S. non-farm payrolls data due on Friday, which is expected to provide further clues on the health of the world’s largest economy.
Hamas has confirmed the death of its armed wing chief, Mohammad Odeh, who was killed in an Israeli strike in Gaza City, according to the Israeli milit...
Dozens of people were killed in Israeli strikes on Lebanon on Tuesday, Lebanese officials said, straining a fragile ceasefire agreed between the cou...
Tajikistan is hosting the Fourth International Conference on the International Decade for Action “Water for Sustainable Development” from 25 to 28...
Canada and the Bahamas announced on Tuesday that they will temporarily restrict entry for residents of the Democratic Republic of the Congo, Uganda an...
Latvia is strengthening its anti-drone capabilities along its borders with Russia and Moscow-allied Belarus after several drones entered the NATO memb...
Hamas has confirmed the death of its armed wing chief, Mohammad Odeh, who was killed in an Israeli strike in Gaza City, according to the Israeli military and Gaza health officials.
Dozens of people were killed in Israeli strikes on Lebanon on Tuesday, Lebanese officials said, straining a fragile ceasefire agreed between the countries in April. The attacks came as Iran accused the U.S. of violating a separate ceasefire with strikes near the Strait of Hormuz.
Tajikistan is hosting the Fourth International Conference on the International Decade for Action “Water for Sustainable Development” from 25 to 28 May in Dushanbe, bringing together thousands of participants from governments, international organisations and financial institutions.
Canada and the Bahamas announced on Tuesday that they will temporarily restrict entry for residents of the Democratic Republic of the Congo, Uganda and South Sudan following an Ebola outbreak in the region.
Start your day informed with the AnewZ Morning Brief. Here are the top stories for 26 May, covering the latest developments you need to know.
Iran has called Monday's U.S. strikes on it 'a gross violation' of their ceasefire. The U.S. military said it carried out defensive strikes in southern Iran after boats were seen laying mines in the Strait of Hormuz. Meanwhile, the U.S. says a peace deal may require several more days.
Shortly after nine o’clock on Tuesday morning (26 May), a sleek white train eased into Tbilisi’s central railway station, a couple of minutes behind schedule, carrying passengers from Baku for the first time since 2020.
The new AnewZ documentary, TARGET: Yerevan, builds its explosive case on exclusive, secret recordings originally published by Minval Politika.
Iran’s Islamic Revolutionary Guard Corps (IRGC) said on Monday it had authorised 32 vessels to pass through the Strait of Hormuz, as Tehran and Washington moved closer to an interim peace deal reportedly mediated by Islamabad.
BP has removed its chair, Albert Manifold, with immediate effect, citing concerns over governance and conduct. The company said its board had unanimously decided that Manifold should no longer serve as chair or director.
The dual-class share structure outlined in SpaceX’s initial public offering (IPO) filing, which gives chief executive Elon Musk outsized control, has reignited one of Wall Street’s longest-running debates over corporate governance.
Kevin Warsh will be sworn in as chair of the U.S. Federal Reserve on Friday as policymakers consider higher interest rates to tackle inflation linked to the Trump administration’s Iran policy.
A government-mediated agreement has suspended an 18-day walkout by about 48,000 Samsung union members, easing fears of damage to South Korea's economy and global chip supply.
Asian stocks surged on Thursday as some vessels resumed passage through the Strait of Hormuz, while forecast-beating results at Nvidia and a suspended workers' strike at Samsung Electronics lifted shares of chipmakers.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment