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.
Iran said on Sunday (10 May) that it had sent its response to a U.S. proposal aimed at launching peace talks to end the war, as signs of tentative ...
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Iran said on Sunday (10 May) that it had sent its response to a U.S. proposal aimed at launching peace talks to end the war, as signs of tentative movement emerged around the Strait of Hormuz despite renewed security incidents across the Gulf.
Slovak Prime Minister Robert Fico has cited Azerbaijan as an example of what he described as a sovereign foreign policy, recalling remarks made by President Ilham Aliyev during talks in Yerevan, where he sharply criticised resolutions adopted against his country by the European Parliament.
Russia is holding a significantly scaled-back Victory Day parade in Moscow on 9 May 2026, reflecting heightened security concerns and the ongoing war in Ukraine, now in its fourth year.
Centre-right leader Péter Magyar was sworn in as Hungary’s prime minister on Saturday, propelled into office on promises of change after years of economic stagnation and strained ties with key allies under his predecessor Viktor Orbán.
Efforts to end the U.S.-Iran war appeared to stall as the two sides exchanged fire in and around the Strait of Hormuz. A reported CIA assessment suggested Tehran could withstand a U.S. naval blockade for months despite mounting sanctions and renewed Gulf attacks.
British paratroopers and military medics have been deployed to Tristan da Cunha after a suspected hantavirus case was confirmed, as first evacuation flights carrying passengers from the stricken MV Hondius cruise ship left Tenerife for Madrid and Paris.
Russia is holding a significantly scaled-back Victory Day parade in Moscow on 9 May 2026, reflecting heightened security concerns and the ongoing war in Ukraine, now in its fourth year.
Indonesian rescue teams have located two Singaporeans who went missing after Mount Dukono erupted on Friday (8 May) on the island of Halmahera, though authorities say it remains unclear whether they are alive.
The U.S. Defense Department has released dozens of previously classified files on unidentified anomalous phenomena (UAP) on Friday (8 May), following an order from President Donald Trump. U.S. officials described as a push for “unprecedented transparency”.
China’s exports grew faster than expected in April, as overseas buyers moved quickly to secure supplies amid fears that the conflict involving Iran could drive up global energy and transport costs.
Stocks around the world climbed to fresh record highs on Wednesday (6 May), while oil prices fell sharply, after reports suggested the United States and Iran were nearing an agreement to end conflict.
U.S. President Donald Trump has said he will raise tariffs on cars and trucks imported from the European Union to 25% next week, up from the 15% level agreed last year, accusing the bloc of failing to comply with its trade commitments.
The decision by the United Arab Emirates to leave OPEC+ on 1 May has put renewed focus on one of the most influential groups in global energy - and how its decisions can shape oil prices worldwide.
The United Arab Emirates has said it's quitting OPEC from 1 May, dealing a major blow to the oil producers’ group and its de facto leader, Saudi Arabia, amid disruption caused by the Iran war.
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