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.
U.S. negotiators Steve Witkoff and Jared Kushner have arrived in Moscow for peace talks on the Russia-Ukraine conflict, two people familiar wi...
An Iranian tanker was hit by U.S. forces on Saturday near Iran's key oil export hub, Kharg Island, in the Gulf...
Spanish authorities are preparing a new site in Ceuta to accommodate hundreds of migrants who remain on the str...
U.S. negotiators Steve Witkoff and Jared Kushner will visit Russia then Ukraine over the weekend, Russian state news agency TASS has reported, citing an unnamed source. Ukrainian President Volodymyr Zelenskyy has also said American envoys will visit the capitals of both countries.
U.S. negotiators Steve Witkoff and Jared Kushner have arrived in Moscow for peace talks on the Russia-Ukraine conflict, two people familiar with the matter said. They were met by Russian Presidential Envoy Kirill Dmitriev.
U.S. efforts to squeeze Iran’s economy through an oil blockade and sanctions are becoming increasingly difficult for Tehran to withstand, according to three senior Iranian sources. Washington is escalating pressure in hopes of securing concessions in future negotiations.
Start your day informed with the AnewZ Morning Brief. Here are the top stories for the 4th of September, covering the latest developments.
Two people have been rescued alive from a tunnel in Nepal, nine days after catastrophic floods devastated the country, as rescuers continue searching for survivors.
Volkswagen’s supervisory board has approved a major overhaul aimed at cutting 100,000 jobs by 2030 as the German carmaker battles weaker sales, falling profits and intensifying global competition.
Chinese Premier Li Qiang has called on American companies to expand their presence in China and pledged that Beijing would address their "reasonable concerns," as China looks to stabilise trade ties with Washington ahead of President Xi Jinping's planned visit to the U.S. later this month
Apple is entering a new era as Tim Cook steps down as chief executive after 15 years at the helm, handing the technology giant's leadership to longtime executive John Ternus.
Volkswagen is heading towards a decisive showdown with labour representatives as Germany's largest carmaker weighs sweeping restructuring measures that could lead to factory closures and tens of thousands of job losses.
Online fast-fashion retailer Shein is seeking to raise up to $1.77 billion in a Hong Kong IPO after its valuation fell around 70 per cent from its private-market peak four years ago.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment