Asian markets today: Asian shares advanced on Thursday, May 7, amid growing optimism that the US and Iran were moving closer to a deal.
Japanese stocks surged more than 4% on Thursday, with the benchmark Nikkei 225 crossing the 62,000 mark for the first time, driven by strong gains in basic materials, technology, and financial stocks. Index heavyweight SoftBank Group jumped over 12%.
Electronics firm Ibiden emerged as the top gainer, soaring 16%, while manufacturing and metals company Mitsui Kinzoku climbed 15%. Renesas Electronics advanced 13%, and chemicals and materials company Tosoh Corporation rallied 12%.
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The Nikkei 225 surged over 4% and crossed the 62,000 mark for the first time due to growing optimism that the US and Iran were moving closer to a peace deal. This led to strong gains in basic materials, technology, and financial stocks.
Global markets reacted positively to easing tensions between the US and Iran. This de-escalation helped global equities recover losses and climb to fresh highs, with softer oil prices easing inflation worries and reigniting enthusiasm around the artificial intelligence trade.
While Japan’s Nikkei 225 and Topix indices gained, South Korea’s KOSPI fell 1.11% and the small-cap KOSDAQ slipped 0.98%. Australia’s S&P/ASX 200 rose 0.9%.
Reports of a potential US-Iran peace deal led to a sharp decline in global oil prices. Brent crude fell significantly, as a resolution could reopen the Strait of Hormuz, restoring the free flow of oil and potentially easing inflationary pressures.
The S&P 500 and Nasdaq ended at record highs, supported by easing tensions in the Middle East and robust earnings from AI-linked companies like Advanced Micro Devices. The Dow Jones Industrial Average also saw significant gains.
The Topix index also gained 2.37%. Meanwhile, Australia’s S&P/ASX 200 rose 0.9%. South Korea’s KOSPI erased earlier gains to fall 1.11%, while the small-cap KOSDAQ slipped 0.98%.
Back home, Gift Nifty signals a negative start to the Indian stock market as the index is trading 0.30% or 74 points down to 24,442, as compared to previous close of 24,516.
US-Iran war update
Trump’s latest threats came amid reports that Washington and Tehran were moving closer to a deal aimed at ending the war.
In a post on Truth Social, the US president said the military campaign, dubbed Operation Epic Fury, “will be at an end” if Iran “agrees to give what has been agreed to,” though he noted that this could be “a big assumption.”
Trump further stated that if an agreement is reached, the US naval blockade of Iranian ports in the Gulf of Oman would be lifted, allowing the Strait of Hormuz to remain “OPEN TO ALL, including Iran.”
Global markets reacted positively to signs of easing tensions in the Middle East, as the US and Iran edged toward a proposal to conclude the nearly 10-week-long conflict. The recent de-escalation has helped global equities recover losses triggered by the war and climb to fresh highs, with softer oil prices easing inflation worries and reigniting enthusiasm around the artificial intelligence trade.
US stock market today
The S&P 500 and the Nasdaq ended Wednesday at record highs, supported by easing tensions in the Middle East, while robust earnings from Advanced Micro Devices triggered a rally in chipmakers and other AI-linked stocks.
The S&P 500 advanced 1.46% to close at 7,365.09 points, while the Nasdaq jumped 2.03% to settle at 25,838.94 points. The Dow Jones Industrial Average rose 1.24% to finish at 49,910.59 points.
Wall Street has witnessed a strong rally in recent weeks, as investors shifted their focus away from the Middle East conflict and toward a solid first-quarter earnings season led by AI-driven companies.
Meanwhile, US private payrolls recorded their biggest increase in 15 months in April, signalling continued resilience in the labour market despite economic uncertainty stemming from tensions with Iran.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.