Asia Shares Rally Toward Record on Tech, Yen Gains: Markets Wrap
(Bloomberg) — Asian shares rallied to near a record as optimism around the artificial intelligence trade and stronger-than-expected earnings from megacap tech companies propelled benchmarks in South Korea and Taiwan to all-time highs. The yen gained.
MSCI’s Asian equities index climbed 2.2% to within touching distance of its all-time high set on Feb. 27, which was just before the US-Israel war on Iran began. Gauges in South Korea and Taiwan both advanced more than 4%. Taiwan Semiconductor Manufacturing Co. jumped 6.6% and South Korean chipmaker SK Hynix Inc. surged 11%.
Futures for the S&P 500 and the Nasdaq 100 also gained after the Wall Street gauges closed at new highs on Friday on earnings from major tech companies including Apple Inc.
Asian markets opened higher after President Donald Trump said the US would begin guiding ships not involved in the Iran conflict through the Strait of Hormuz from Monday. However, a senior Iranian official said Tehran would consider any US interference in the Strait a ceasefire breach, according to an AFP report.
Brent crude whipsawed — initially falling 2.4%, then erasing those losses before trading little changed at about $108 a barrel.
“Markets are currently performing well because of this AI-driven trade or AI-driven hype,” said Dilin Wu, a strategist at Pepperstone Group. “But this geopolitical upheaval, and also the high oil price, are always a constraint. So I would be cautiously optimistic on the Asian market in general.”
The yen strengthened as much as 0.7% Monday after Japan reportedly intervened in the market last week. There’s no cash trading of US Treasuries until New York opens due to holidays in Tokyo and London. Mainland China is also closed.
In other corners of the market, gold edged lower to around $4,600 an ounce, while silver traded around $75.75 an ounce. Bitcoin led cryptocurrencies higher, rising 1% to about $79,800. MSCI’s gauge of Asian technology shares surged 4.7% to a record.
The latest headlines add to the month-long surge in equities as traders mostly set aside concerns about the economic fallout from the Middle East hostilities, with signs of corporate resilience driving US stocks to their best month since 2020. Efforts to turn a fragile ceasefire into lasting peace combined and signs of US economic strength sent the S&P 500 to its fifth consecutive week of gains.
Trump described discussions with Tehran as “very positive” after it received Washington’s response to its latest proposal to end the war. Steps to guide neutral ships out through the Strait of Hormuz could pave the way for smoother energy flows from the Middle East after a near-full blockade for two months.
Iran’s proposal called for a complete end to the conflict within 30 days along with guarantees against renewed strikes, the semi-official Tasnim News Agency reported. The plan reiterated Tehran’s earlier demands, including that US forces withdraw from near Iran, a maritime blockade be lifted, sanctions removed and reparations paid, it said.
“The devil is always in the detail, but is a positive signal as it shows both parties are willing to find common ground,” said Rodrigo Catril, a strategist at National Australia Bank Ltd. in Sydney. Whether the positive sentiment lasts “is hard to tell. We have been here before,” he said.
What Bloomberg Strategists Say…
Conflicting reports are leaving traders unclear on the role of the US Navy which is reported to be acting in a coordination process for countries, insurance companies and shipping organizations. This appears to be some way from physically protecting ships.
— Mark Cranfield, MLIV. For full analysis, click here.
The S&P 500 Index ended April at highs with about 81% of the benchmark’s companies having beat first-quarter earnings estimates, according to data compiled by Bloomberg. Emerging market equities notched a fresh record high toward the end of April while Asian shares have also recouped their war-driven losses.
Risk-taking went beyond equities, with high-yield credit spreads near multi-year tights and retail traders piling into prediction markets and zero-day options. The rally has held through the war in Iran, oil above $100 a barrel and a Federal Reserve that has signaled rates will stay higher for longer amid elevated energy costs.
“The market is being very patient with this level of uncertainty because it is focused on the other side of the conflict, which may be too optimistic,” said Joe Gilbert, a portfolio manager at Integrity Asset Management. “The economic damage being done will be more materially felt in the next month.”
Corporate News:
GameStop Corp. will offer $125 in cash and stock per eBay Inc. share in a takeover proposal valued at about $56 billion, the Wall Street Journal reported, citing an interview with GameStop Chief Executive Ryan Cohen. National Australia Bank missed first-half profit estimates as higher software costs and the deteriorating economy pushed up credit provisions, offsetting robust loan growth. China ordered companies in the country not to comply with US sanctions on five domestic refiners linked to the Iranian oil trade, deploying a blocking measure introduced in 2021 that was aimed at protecting its firms from foreign laws it deemed unjustified. Thyssenkrupp AG said it and Jindal Steel International agreed to pause talks about the Indian company acquiring a stake in its steel unit. Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.1% as of 12:52 p.m. Tokyo time Nikkei 225 futures (OSE) rose 0.5% Australia’s S&P/ASX 200 fell 0.4% Hong Kong’s Hang Seng rose 1.7% Euro Stoxx 50 futures rose 0.3% Currencies
The Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.1% to $1.1735 The Japanese yen rose 0.7% to 155.96 per dollar The offshore yuan rose 0.2% to 6.8207 per dollar Cryptocurrencies
Bitcoin rose 1.6% to $80,160.21 Ether rose 2.3% to $2,382.99 Bonds
Australia’s 10-year yield declined two basis points to 5.00% Commodities
West Texas Intermediate crude rose 0.1% to $102.09 a barrel Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.
–With assistance from Matthew Burgess and Bernadette Toh.
©2026 Bloomberg L.P.
