Asian Stocks Post Gains as Tech Sector Strengthens, Dollar Weakens

Asian Shares Climb on Strong Corporate Earnings and Optimistic Sentiment

Asian equities rose 1% on Monday, with South Korean shares jumping 2.8% to a record, while Taiwanese stocks opened 2.6% higher. The MSCI's Asian equities gauge posted gains, driven by strong corporate earnings from megacap tech companies, including Apple Inc.

The technology sector remained buoyant, with US equity-index futures edging up 0.1% after the Wall Street gauges closed at new highs on Friday. Markets opened on an optimistic note after President Donald Trump announced that the US would begin guiding ships not involved in the Iran conflict through the Strait of Hormuz from Monday.

However, a senior Iranian official warned that Tehran would consider any US interference in the Strait a ceasefire breach, according to an AFP report. The warning came as Iran received the US response to its latest proposal to end the war, which called for a complete end to the conflict within 30 days along with guarantees against renewed strikes.

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Brent crude whipsawed, initially falling 2.4%, then erasing those losses before dropping 0.5% to just under $108 a barrel. The dollar edged lower against most of its major peers, with the yen strengthening to 156.94 per dollar after Japan intervened in the market on Thursday.

The positive sentiment in the markets was driven by the optimistic tone of President Trump, who described discussions with Tehran as "very positive." 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.

Treasury futures rose, and there will be no cash trading in US debt until New York due to holidays in Tokyo and London. The latest headlines add to the month-long surge in equities, with signs of corporate resilience driving US stocks to their best month since 2020.

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The S&P 500 ended April at highs, with about 81% of the benchmark's companies having beaten first-quarter earnings estimates, according to data compiled by Bloomberg. Emerging market equities notched a fresh record high toward the end of April, while a gauge of Asian stocks have almost 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.