Asian markets today: Asian markets traded higher on Thursday, 21 May, following strong gains on Wall Street, as easing oil prices boosted sentiment amid rising optimism that the Middle East conflict may soon come to an end.
Japan’s Nikkei 225 jumped 3.06% after the country released its latest trade figures. Exports in April climbed 14.8% year-on-year — the fastest growth since January — driven largely by robust semiconductor shipments and surpassing market expectations. Imports increased 9.7%, above the anticipated 8.3% rise, while Japan’s trade deficit narrowed to 301.9 billion yen from 643 billion yen in March, according to official data.
Meanwhile, SoftBank Group surged nearly 20% after strong earnings from Nvidia reinforced optimism around AI-driven growth.
South Korea’s Kospi gained 6%, while the small-cap Kosdaq index rose 5.55%. Market heavyweight Samsung Electronics climbed more than 6% after a potential strike involving over 47,000 workers was avoided following progress in wage negotiations.
Australia’s S&P/ASX 200 advanced 1.66%. Meanwhile, Hong Kong’s Hang Seng index futures stood at 25,761, above the benchmark’s previous close of 25,651.12.
Why are Asian markets rising today?
US President Donald Trump stated that Washington was in the “final stages” of negotiations with Iran, according to a pool report, boosting investor confidence.
On Wednesday, Iran’s foreign ministry spokesperson said communication between Tehran and Washington remains ongoing through exchanged messages. Meanwhile, President Donald Trump stated that the US was prepared to wait a few more days for the “right answer” from Iran, after earlier saying that negotiations between the two countries were in their final stages.
Oil prices have surged sharply amid the Trump administration’s blockade of Iranian ports, while Tehran has effectively shut the Strait of Hormuz — one of the world’s most vital energy transit routes.
In early Thursday trading in Asia, West Texas Intermediate crude futures rose 0.46% to $98.75 per barrel, while Brent crude gained 0.42% to reach $105.42 a barrel. However, during Wednesday’s session, WTI futures had declined 5.66% to settle at $98.26 per barrel, and Brent crude dropped 5.63% to close at $105.02 a barrel.
“Asian markets responded strongly to the improving backdrop, with South Korea’s Kospi surging nearly 5.8% and Japan’s Nikkei gaining around 3%. U.S. markets also staged a sharp recovery overnight, with the Dow Jones rallying more than 600 points as concerns surrounding elevated oil prices and interest rate pressures temporarily eased,” said Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth.
US stock market today
Wall Street’s major indices surged more than 1% on Wednesday, recovering from a three-session decline as investor sentiment improved, driven by gains in technology and semiconductor stocks ahead of NVIDIA’s quarterly earnings announcement.
The Dow Jones Industrial Average climbed 645.47 points, or 1.31%, to close at 50,009.35, while the S&P 500 advanced 79.36 points, or 1.08%, to 7,432.97. The Nasdaq Composite gained 399.65 points, or 1.55%, ending at 26,270.36.
Shares of NVIDIA rose 1.3% ahead of its earnings report. As the world’s most valuable company and a leading AI chipmaker, Nvidia’s results are widely seen as a key indicator of whether strong demand for artificial intelligence spending can continue to justify elevated valuations in the technology sector.
(With inputs from agencies)
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.