On Thursday (7 May, 9:21 AM, GMT+7, Bangkok time), major indices in the Asia Pacific showed upward trends, with Japanese equities recording significant gains, propelling the Nikkei 225 past 62,000 for the first time. Robust performance in the basic materials, technology, and financial sectors contributed to the rally in the world’s fourth-largest economy, even as geopolitical risks in the Middle East persisted.
Investor sentiment was boosted by signs of progress toward a peace agreement between the United States and Iran. President Donald Trump issued a warning that U.S. military action against Iran would intensify unless an agreement was reached, with military operations—including Operation Epic Fury—potentially ceasing if Tehran accepted the proposed arrangements. Trump noted that compliance would also result in the end of the U.S. naval blockade of Iranian ports, allowing unrestricted access through the Strait of Hormuz.
The broader Asia Pacific equity rally followed Wall Street’s strong performance overnight, where major U.S. stock indices closed at all-time highs. Approximately 80% of companies in the S&P 500 have reported earnings surpassing analyst expectations this quarter, further supporting global market momentum.
Lower oil prices, stemming from easing conflict-related concerns, contributed to reducing inflation expectations and aided the renewed strength in technology-related sectors.
Attention is now turning toward a summit between Trump and Chinese President Xi Jinping, rescheduled following prior delays related to the Middle East conflicts. Chinese officials have urged the rapid reopening of the Strait of Hormuz in discussions with Iranian counterparts.
Japan’s NIKKEI soared by 5.51% to 62,792.96. South Korea’s KOSPI rose by 0.22% to 7,400.74, and Australia’s ASX 200 increased by 0.85% to 8,868.60.
As for stocks in China, Shanghai’s SSEC grew by 0.22% to 4,169.43. Shenzhen’s SZI climbed by 0.07% to 15,471.02, and Hong Kong’s HSI jumped by 1.46% to 26,595.21.
The U.S. stock markets edged up on Wednesday as the Dow Jones Industrial Average (DJIA) surged by 1.24% to 49,910.59. NASDAQ expanded by 2.03% to 25,838.94, and S&P 500 escalated by 1.46% to 7,365.12. VIX gained 0.06% to 17.39.
As for commodities, oil prices settled lower on Wednesday amid mounting hopes for a resolution to the conflict in the Middle East, following indications that the United States and Iran were close to reaching a preliminary agreement. Brent crude was down by $8.60, or 7.83%, to finish at $101.27 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) futures dropped $7.19, representing a 7.03% decline, settling at $95.08 per barrel.
This morning, Brent futures rose 9 cents or 0.09% to $101.36 per barrel, while the WTI futures declined 2 cents or 0.02% to $95.06 per barrel.
Meanwhile, gold futures grew by 0.58% to $4,721.40 per Troy ounce.
