U.S.-Iran Peace Hopes, AI Cheer Power Asia Markets Higher — Update

By Kimberley Kao and Megan Cheah

Asian stocks rallied again on Thursday as continued hopes for a U.S.-Iran resolution and another surge in artificial-intelligence stocks lifted markets.

Investors piled into chip and names in Asia once more as the risk-on mood was underpinned by more U.S. earnings overnight that rekindled enthusiasm for AI.

Strong earnings from chip companies are cementing the AI growth story, sending tech-heavy indexes to fresh highs, said Ipek Ozkardeskaya at Swissquote.

Asian stock benchmarks were broadly higher Thursday afternoon, led by Japan's Nikkei, which jumped 5.6% to close at a record high amid sharp gains in chip stocks. Index heavyweight SoftBank surged 18%.

South Korea's Kospi index also scaled new peaks. finishing 1.4% higher as airline and auto stocks advanced. The strong chip cycle could overcome the drag from higher oil prices for tech-heavy South Korea, said Citi analysts in a note.

Australia's S&P/ASX 200 benchmark index rose 1.0% while China's Shanghai Composite closed 0.5% higher. Hong Kong's Hang Seng Index gained 1.5%, while Singapore's FTSE Straits Times Index added 0.3%.

Oil prices fell and the dollar weakened as hopes for a peace deal persisted despite any concrete sign of progress.

The U.S. and Iran are working with mediators on a framework to restart negotiations that could end the conflict and reopen the Strait of Hormuz, The Wall Street Journal reported, citing people familiar with the matter.

"The situation remains highly fluid with intraday volatility likely to remain high until greater substance emerges," ANZ Research analysts said.

Front-month West Texas Intermediate crude oil futures were last 2.2% lower at $93.02 a barrel, while front-month Brent crude oil futures were down 2.2% at $99.01 a barrel.

Spot gold gained 1.1% to $4,742.05 a troy ounce.

"Signs continue to point to limited appetite for further escalation in the Middle East," said Lloyd Chan, senior currency analyst at MUFG.

As the U.S. midterm elections loom and gasoline prices surge, Washington seems to have incentives to resolve the conflict, he added.

Write to Kimberley Kao at kimberley.kao@wsj.com and Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

May 07, 2026 04:03 ET (08:03 GMT)