Stocks Rally and Oil Declines on Iran, Yen Gains: Markets Wrap
(Bloomberg) — Stocks climbed to a record and oil fell after President Donald Trump signaled progress toward a final agreement with Iran, adding fresh momentum to markets already buoyed by a rally in technology shares. The yen saw another spike higher.
MSCI’s gauge of Asia Pacific equities advanced as much as 2.5% to an all-time high with technology shares leading gains on renewed optimism for the artificial intelligence trade. The Kospi index in South Korea, a poster child for AI investments, jumped more than 6% to a record, with Samsung Electronics Co. surging 15% to reach a valuation of $1 trillion, the second Asian company to attain that mark.
Brent crude dropped 1.1% to trade below $109 a barrel on speculation tensions in the Middle East will ease following Trump’s comments.
The yen jumped more than 1% to about 155.85 per dollar. A number of surges in the currency over recent days is ensuring traders remain on edge over the potential for Japanese authorities to step back into the market after last week’s intervention to curb declines. The dollar weakened against all its Group-of-10 peers.
MSCI’s index of global stocks also advanced to a record as cheaper oil bolstered expectations for easing inflation and stronger growth. Wall Street gauges also closed at all-time highs on Tuesday. Stronger-than-expected earnings from Advanced Micro Devices Inc. and Super Micro Computer Inc. after the US close added to risk appetite, with futures for the Nasdaq 100 Index rising 0.7%. European shares were set for a 0.8% gain at the open.
With geopolitical risk premiums easing, the prospect of lower energy costs and reduced uncertainty improved the outlook for global growth, reinforcing support for equities even at record levels. The backdrop also dovetailed with a revival in the AI trade, as easing inflation pressures and improved sentiment bolstered expectations for stronger corporate earnings.
“Rising semiconductor content across AI and high-performance computing is a structural multi-year growth driver,” said Vey-Sern Ling, managing director at Union Bancaire Privee. “So any signs of easing tensions in the Middle East will bring investors back into the trade, especially for supply chain players residing in Asia and emerging markets.”
The Japanese government intervened in the currency market in late April for the first time since 2024, causing the yen to jump around 3% in intraday trading. The Finance Ministry did not immediately respond to a request for comment outside regular working hours on a national holiday Wednesday.
What Bloomberg Strategists Say…
“Dollar-yen is on the move lower and last week’s nadir at 155.50 is the tipping point for FX traders. should USD/JPY push through the May 1 low point it will spook traders who doubted the credentials of Japanese authorities.”
— Mark Cranfield, MLIV. For full analysis, click here.
Elsewhere, China’s benchmark CSI 300 Index rose 1.6% as trading resumed after local holidays.
Cheaper oil lifted the bond market with longer-maturity US Treasuries rebounding during the New York session. That sent the 30-year yield back below 5%. Even so, bond traders are boosting wagers that the Federal Reserve’s next policy move may be an interest-rate hike rather than a cut.
There was no cash trading in Treasuries during the Asian day due to a holiday in Japan. Treasury futures gained.
Meanwhile, Trump said he would pause a US-led effort to help stranded ships exit the Strait of Hormuz to see if an agreement with Iran to end the war could be reached. The president cited “Great Progress” toward a complete and final agreement with Iran.
However, he added that a US blockade of ships transiting to and from Iranian ports would “remain in full force and effect.”
It was not clear what progress Trump referred to, and he didn’t provide details on what, if any, negotiations were in the works. His comments marked an abrupt shift from recent days when he had voiced frustration over the pace of talks and indicated he wasn’t satisfied with Tehran’s proposals.
“The market is pricing in optimism, the physical reality is lagging,” said Dilin Wu, a strategist at Pepperstone Group. “Oil prices may be pulling back on headline relief, but you’re still seeing limited shipments through the Strait of Hormuz. It will take time for stranded tankers to be rerouted, for the insurance market to reprice risk, and for production to ramp back up.”
Corporate News:
Anthropic PBC unveiled a set of new artificial intelligence agents designed to handle a broader mix of financial services tasks, part of the company’s push to win over Wall Street. BMW AG’s carmaking returns fell in the first quarter as intense competition in China weighed on prices and deliveries in the world’s biggest auto market. Deutsche Lufthansa AG posted a smaller-than-expected loss in the first quarter as strong demand for long-haul flights helped offset volatile fuel costs and disruption from labor strikes. Royal Philips reported first quarter earnings that beat expectations after strong orders, giving confidence the medical technology firm can withstand the burden from geopolitical turmoil and rising costs. Novo Nordisk A/S’s new Wegovy pill helped fuel sales in the first quarter as the drugmaker said this year’s declines won’t be as bad as initially expected. Infineon Technologies AG forecast revenue that beat analysts’ expectations in the current quarter as the German chipmaker benefits from a spending boom on artificial intelligence infrastructure. Daimler Truck Holding AG confirmed its full-year guidance while flagging US trade tariffs and the impact of the Iran conflict as risks that are difficult to assess. Equinor ASA’s profit surpassed expectations in the first quarter, lifted by higher oil and gas prices caused by the Iran war. Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.3% as of 6:50 a.m. London time Nasdaq 100 futures rose 0.8% The MSCI Asia Pacific Index rose 2.2% The MSCI Emerging Markets Index rose 2.5% Nikkei 225 futures (OSE) rose 3% Australia’s S&P/ASX 200 rose 1.2% Hong Kong’s Hang Seng rose 0.9% The Shanghai Composite rose 1.3% Euro Stoxx 50 futures rose 0.9% Currencies
The Bloomberg Dollar Spot Index fell 0.5% The euro rose 0.3% to $1.1733 The Japanese yen rose 1% to 156.29 per dollar The offshore yuan rose 0.1% to 6.8189 per dollar The British pound rose 0.3% to $1.3585 Cryptocurrencies
Bitcoin fell 0.5% to $81,252.42 Ether fell 0.8% to $2,363.15 Bonds
Australia’s 10-year yield declined one basis point to 4.96% Commodities
Spot gold rose 2.1% to $4,650.74 an ounce West Texas Intermediate crude fell 1.4% to $100.84 a barrel This story was produced with the assistance of Bloomberg Automation.
–With assistance from Abhishek Vishnoi and Ruth Carson.
©2026 Bloomberg L.P.
