Asian Markets Rally on Hopes of Easing US-Iran Tensions

Asian Markets Surge on Thursday Amid Optimism Over Middle East Conflict

Asian markets traded higher on Thursday, 21 May, following strong gains on Wall Street, as easing oil prices boosted sentiment amid rising optimism that the Middle East conflict may soon come to an end. Japan's Nikkei 225 jumped 3.06% after the country released its latest trade figures, which showed exports in April climbed 14.8% year-on-year, the fastest growth since January, driven largely by robust semiconductor shipments and surpassing market expectations.

The surge in the Nikkei 225 was fueled by robust semiconductor shipments, with exports increasing 14.8% year-on-year, surpassing market expectations. Imports also rose 9.7%, above the anticipated 8.3% rise, while Japan's trade deficit narrowed to 301.9 billion yen from 643 billion yen in March, according to official data.

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Meanwhile, SoftBank Group surged nearly 20% after strong earnings from Nvidia reinforced optimism around AI-driven growth. South Korea's Kospi gained 6%, while the small-cap Kosdaq index rose 5.55%. Market heavyweight Samsung Electronics climbed more than 6% after a potential strike involving over 47,000 workers was avoided following progress in wage negotiations.

Australia's S&P/ASX 200 advanced 1.66%. Hong Kong's Hang Seng index futures stood at 25,761, above the benchmark's previous close of 25,651.12.

The optimism in Asian markets was driven by US President Donald Trump's statement that Washington was in the "final stages" of negotiations with Iran, boosting investor confidence. Oil prices have surged sharply amid the Trump administration's blockade of Iranian ports, while Tehran has effectively shut the Strait of Hormuz – one of the world's most vital energy transit routes.

In early Thursday trading in Asia, West Texas Intermediate crude futures rose 0.46% to $98.75 per barrel, while Brent crude gained 0.42% to reach $105.42 a barrel. However, during Wednesday's session, WTI futures had declined 5.66% to settle at $98.26 per barrel, and Brent crude dropped 5.63% to close at $105.02 a barrel.

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US stock market indices surged more than 1% on Wednesday, recovering from a three-session decline as investor sentiment improved, driven by gains in technology and semiconductor stocks ahead of NVIDIA's quarterly earnings announcement. The Dow Jones Industrial Average climbed 645.47 points, or 1.31%, to close at 50,009.35, while the S&P 500 advanced 79.36 points, or 1.08%, to 7,432.97. The Nasdaq Composite gained 399.65 points, or 1.55%, ending at 26,270.36.