The Tamesis
Asian markets were broadly higher on Friday, with artificial intelligence and technology stocks pushing Tokyo’s Nikkei to new highs, while optimism about U.S.-Iran talks also boosted global morale.
Investor sentiment was boosted by diplomatic progress in the Middle East that could stabilize energy supplies after weeks of tumultuous conflict in the Middle East. But rising oil prices have also brought inflation concerns into focus.
U.S. Secretary of State Marco Rubio said talks to end the war may be making progress and looked to Pakistani mediators to help reach a deal to end the war.
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“I believe the Pakistanis are going to Tehran today. So hopefully that will further the process,” Rubio told reporters.
President Donald Trump warned on Wednesday that negotiations were “on the borderline” between a deal and another strike.
“If we don’t get the right answers, things move very quickly. We’re all ready,” Trump said.
Pakistanis in Tehran, PM to visit Beijing
A ceasefire agreed on April 8 ended weeks of fighting between the U.S.-Israeli alliance and Iran, but a lasting peace agreement has yet to be reached, leaving markets swinging on each development.
Pakistan’s Interior Minister Mohsin Naqvi, who is seen as close to Pakistan’s powerful army chief Asim Munir, visited Iran on Wednesday for the second time in a week.
Iranian media, including the ISNA news agency, reported based on unnamed sources that Munir may personally visit Tehran as early as Thursday, but Pakistani authorities have not commented on any travel plans by the army chief.
However, Beijing did announce that Pakistani Prime Minister Shehbaz Sharif would travel to China on Saturday, which is also involved in mediation efforts to end the war.
Tehran said it was reviewing the U.S. proposal but warned it would respond “strongly” to any new attacks as the two sides traded conditions amid escalating threats.
A key sticking point remains the Strait of Hormuz, which remains effectively closed despite the ceasefire and normally carries a fifth of the world’s energy supplies and about a third of global fertilizer shipments.
Nikkei hits record high
Across Asia, gains extended into the afternoon. Tokyo’s Nikkei 225 closed up 2.7%, hitting a record high. SoftBank rose nearly 12%, Taiyo Yuden rose 13.5%, and technology companies such as Fujikura and Kioxia saw strong gains.
Taipei stocks rose more than 2.0%, driven by strength in technology stocks. Shares of Taiwanese chip giant TSMC rose 1.0%.
Shanghai and Hong Kong closed in the lead. Sydney, Jakarta and Mumbai also rose, as did Bangkok, Manila, Singapore and Kuala Lumpur, heralding gains across the region.
Oil prices rose slightly, with Brent crude exceeding $104 a barrel and U.S. benchmark WTI approaching $98, both rising on the day.
Analysts said energy and interest rate dynamics remain central to market direction.
“The market sees continued dialogue as being moderately constructive in and of itself,” said Stephen Innes of SPI Asset Management.
“Nevertheless, beneath the surface, the bigger macro story remains one of steady gains in U.S. yields,” he wrote in a commentary.
“Markets are increasingly re-pricing that as growth and inflation remain sticky, the Fed may need to tighten policy for longer, or even raise interest rates.”
Wall Street closed slightly higher on Wednesday, with stocks cautiously rising.
Samsung chipmaker to vote on pay deal
People’s attention also turned to South Korea Samsung union workers prepare to vote A tentative wage deal was reached on Friday, averting a major strike.
The chip giant and its union reached a tentative deal on Wednesday night after last-minute government-brokered talks, averting an 18-day strike that had been scheduled to begin on Thursday.
The expected deal introduces a new bonus pool for semiconductor unit employees, equal to 10.5% of the unit’s operating profits, to be paid in shares.
While workers are expected to benefit from the deal, some shareholders have objected and have vowed to take legal action.
Samsung Electronics shares fell 2.3% on Friday afternoon.
Japanese government data showed core inflation slowed to 1.4% in April, below market expectations, as Prime Minister Takaichi Sanae rushed to draft an extra budget to offset the impact of war in the Middle East.
In Europe, London, Paris and Frankfurt lead the way.
Elon Musk’s filing for a public sale of SpaceX stock boosted sentiment on Wall Street in what could be the largest initial public offering in history as the rocket and satellite company seeks to raise up to $75 billion.
Key figures around 0810 GMT
North Sea Brent crude oil: rose 2.6% to $105.29 a barrel.
West Texas Intermediate crude oil: rose 2.1% to $98.38 a barrel.
TOKYO – Nikkei 225: up 2.7% to 63,339.07 (close).
Hong Kong’s Hang Seng Index: rose 0.9% to 25,606.03 (close).
Shanghai – Composite Index: up 0.9% to 4,112.90 (close).
LONDON – FTSE 100: up 0.4% to 10,486.06.
USD/JPY: rose from 158.91 yen to 159.12.
NEW YORK – Dow: up 0.6% to 50,285.66 (close).
- AFP With additional input and editing by Jim Pollard
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