Asian Stocks Soar Amid US-Iran Tensions and AI Boom

Asian share markets surged as investors watched potential US-Iran developments, with the Nikkei 225 hitting a new high. While oil prices dipped, stimulating optimism, geopolitical tensions persisted. US markets also climbed, fueled by robust earnings reports from tech companies, including AMD and Nvidia, and hopes for easing oil prices.

Asian share markets saw significant gains on Thursday, highlighted by Tokyo's Nikkei 225, which soared 5.7% during intraday trading, setting a new record as investors awaited progress on a potential US-Iran agreement regarding crude oil shipments from the Persian Gulf. After reopening from the 'Golden Week' holidays, Japan's Nikkei reached an impressive 62,915.87, marking an 18% increase in the last three months and a 73% rise over the past year, driven in large part by the surge in tech stocks benefiting from the artificial intelligence boom.

Elsewhere in Asia, Hong Kong's Hang Seng rose 1.3%, while markets in Australia and Taiwan also posted gains. However, South Korea's Kospi saw a slight decline as traders locked in profits after a sizeable leap earlier in the week. In response to geopolitical developments, oil prices dropped nearly 8%, sparking optimism in global markets. In the US, stocks rallied with the S&P 500 setting a new record, bolstered by strong earnings from tech giants like AMD and Nvidia.

Despite the optimism fueled by economic data and market rallies, tensions remained high after the US took military action against an Iranian oil tanker, emphasizing the ongoing strain in US-Iran relations. Early Thursday trading saw oil prices edge higher, while optimism persisted about a potential deal that could see the Strait of Hormuz reopened to international shipping, alleviating pressures on global inflation.