Nexus News Alert | Singapore, May 07, 2026 — Asian markets posted strong gains on Thursday, with Japan’s benchmark Nikkei 225 surging over 5% to cross the historic 62,000 mark for the first time. The rally came even as US President Donald Trump issued fresh warnings to Iran amid the ongoing Middle East tensions.
The broader Asia-Pacific region shrugged off geopolitical concerns as investors appeared optimistic about possible diplomatic progress between the US and Iran.
Market Performance Highlights
| Index | Change | Closing Level |
|---|---|---|
| Nikkei 225 (Japan) | +5.58% (+3,320 points) | 62,833 |
| Hang Seng (Hong Kong) | +1.54% | 26,618 |
| S&P/ASX 200 (Australia) | +0.96% | 8,878 |
| Kospi (South Korea) | Mixed | -0.68% |
| CSI 300 (China) | +0.38% | 4,180 |
The Nikkei was led by strong gains in technology, basic materials, and financial stocks. SoftBank surged more than 13%, while Ibiden, Mitsui Kinzoku, Renesas Electronics, and Tosoh Corporation posted double-digit gains.
Why Markets Rallied Despite Tensions
Investors focused on signs of diplomacy rather than escalation. Trump stated that military action could end if Tehran accepts a proposed deal. He also hinted that the Strait of Hormuz could reopen for all shipping, including Iran, if an agreement is reached.
This optimism helped Wall Street hit record highs overnight, with the S&P 500 rising 1.46%, Nasdaq gaining 2.02%, and Dow Jones adding 1.24%.
Oil prices eased slightly, with Brent crude trading near $100 per barrel after recent volatility caused by disruptions in the Strait of Hormuz.
Impact on Global Sentiment
Analysts noted that markets are pricing in the possibility of a quick resolution to the US-Iran conflict. A successful deal could significantly reduce risks to global energy supplies and shipping routes, providing a major boost to risk assets worldwide.
However, analysts caution that any breakdown in talks could lead to renewed volatility, especially if military action resumes at a higher intensity as warned by Trump.
Key Drivers Behind Nikkei’s Record High
- Strong corporate earnings outlook in Japan
- Weaker yen supporting exporters
- Positive global risk sentiment
- Hopes for US-Iran diplomatic breakthrough
The milestone comes at a time when Japanese stocks have been on a strong bull run, driven by corporate governance reforms and foreign investor inflows.
Nexus News Alert will continue to track developments in Asian markets, the US-Iran ceasefire situation, and their impact on global oil prices and investor sentiment.
