Japan’s Nikkei 225 surged 5.58% past 62,000 on Thursday, May 7, 2026 — its first trading session after a week-long Golden Week holiday — as Asia-Pacific equities rallied broadly on the back of easing geopolitical tensions and a powerful round of corporate earnings. According to Reuters, MSCI’s broadest index of Asia-Pacific shares outside Japan also hit a fresh all-time high, rising 1.7% on the session. Oil prices sank on optimism over a tentative U.S.-Iran peace framework, lifting risk appetite across the region.
South Korea: KOSPI Extends Rally, KOSDAQ Pulls Back
South Korean equities held their recent strength despite a light pullback in smaller-cap names. The KOSPI advanced 105.49 points (+1.43%) to close at 7,490.05, building on last week’s sharp recovery.
The KOSDAQ, which had outperformed during the broader rebound, slipped 10.99 points (−0.91%) to 1,199.18 — a likely consolidation after its recent run. Tech sentiment still ran broadly positive, with Samsung Electronics in focus after reports that Apple is considering expanding Samsung’s role in its chip supply chain as it navigates tariff pressures and friend-shoring. Blowout earnings from Samsung and SK Hynix — highlighted in Reuters’ global market wrap — also reinforced bullish sentiment for Korea’s semiconductor sector.
Japan: Nikkei 225 Crosses 62,000 for the First Time
The headline story across Asia was Japan’s Nikkei 225, which soared 3,320.72 points (+5.58%) to 62,833.84 — its highest close ever. Trading resumed Thursday after a full week of Golden Week holidays (April 29–May 6), and investors wasted no time pricing in the global risk rally that had unfolded in their absence.
Reuters noted that “Rocketing oil prices whacked global markets in March but a fragile ceasefire and prospect of a deal have spurred a risk-on rally since April that has been fuelled by strong tech earnings reports.” S&P 500 companies are on track for their strongest profit growth in more than four years, and Japan’s market needed only one session to close that gap.
The yen remained a subplot: the currency steadied at around 156.35 per dollar after hitting a 10-week high of 155 on Wednesday. Japan’s top currency diplomat Atsushi Mimura reiterated that Tokyo faces “no constraints” on intervention frequency and maintains daily contact with U.S. authorities. U.S. Treasury Secretary Scott Bessent is expected to visit Tokyo next week, with analysts expecting yen policy to feature prominently in those discussions.
China & Hong Kong: Broad Gains as Oil Drop Lifts Sentiment
The Hang Seng Index climbed 412.50 points (+1.57%) to 26,626.28, with MSCI’s Asia-Pacific ex-Japan gauge reaching a record high. Mainland China’s Shanghai Composite edged up 19.92 points (+0.48%) to 4,180.09 — a more measured gain as China’s own energy import costs also benefit from softer crude.
Both Brent crude and WTI declined sharply after the U.S. and Iran edged toward a limited, temporary ceasefire agreement. Brent fell nearly 3% to around $98.3 per barrel, extending the prior session’s near-8% drop. Even so, Brent remains roughly 40% above its level from late February — a reminder that energy-cost pressures have not fully unwound.
Taiwan, Singapore & Australia: Tech Lifts the Region
Taiwan’s TAIEX (Taiwan Weighted Index) outperformed with a gain of 794.93 points (+1.93%) to 41,933.78, as TSMC’s earlier blowout results continued to anchor bullish positioning in the island’s semiconductor-heavy market. The strong showing from Arm Holdings, which reported Q4 fiscal 2026 earnings that beat estimates on AI demand (Q4 profit of $313 million, up from $210 million a year earlier), reinforced the AI-chip investment thesis that runs through TSMC and the broader Taiwan tech complex.
Singapore’s Straits Times Index added 14.58 points (+0.30%) to 4,941.96, while Australia’s S&P/ASX 200 rose 84.50 points (+0.96%) to 8,878.10, supported by lower oil and a globally positive tone.
Key Macro Variables Behind Thursday’s Rally
1. U.S.–Iran Peace Framework
The most significant overnight development was the emerging draft agreement between Washington and Tehran. Reuters reported the framework would halt the fighting but leave several contentious issues unresolved. Markets reacted positively despite the uncertainty, with Lombard Odier chief economist Samy Chaar noting: “the momentum is going in a good direction.” Lower oil prices, in turn, ease pressure on yield curves and bond yields — translating directly into better equity valuations.
2. Tech Earnings Momentum
Samsung, SK Hynix, and TSMC all delivered blowout quarterly results, reinforcing Asia’s role as the backbone of the global AI and semiconductor supply chain. Arm Holdings’ AI-driven earnings beat added another data point to the theme. Yahoo Finance’s market desk flagged that “more records are in play amid optimism for a US-Iran peace deal and for AI-fueled earnings growth.”
3. Currency & Dollar
The dollar index dipped slightly to around 97.90, providing modest support to Asian currency-denominated assets. The yen stabilized but remains a monitored risk: elevated dollar/yen (156.35) may prompt further BOJ or MoF action, particularly with a high-profile Bessent–Katayama meeting on the horizon next week.
What Investors Should Watch Next
- U.S.–Iran deal progress: Whether the draft framework advances to a formal ceasefire will determine whether oil’s two-day decline is sustained or reverses.
- Bessent’s Tokyo visit: Expected discussions on yen policy could affect USD/JPY positioning and Japan’s export sector.
- TSMC & Samsung supply chain updates: Apple’s reported supplier discussions and AI capex demand are key catalysts for Korea and Taiwan going forward.
- Fed rate path: With oil prices falling and the broader risk tone improving, the Fed’s next move carries heightened significance for global equity multiples.
- Nikkei follow-through: The 5.6% Golden Week catch-up is historic, but whether the Nikkei sustains above 62,000 will test how much optimism is already priced in.
Index Summary — May 7, 2026
| Index | Close | Change | % Change |
|---|---|---|---|
| Nikkei 225 (Japan) | 62,833.84 | +3,320.72 | +5.58% |
| TAIEX (Taiwan) | 41,933.78 | +794.93 | +1.93% |
| Hang Seng (Hong Kong) | 26,626.28 | +412.50 | +1.57% |
| KOSPI (South Korea) | 7,490.05 | +105.49 | +1.43% |
| S&P/ASX 200 (Australia) | 8,878.10 | +84.50 | +0.96% |
| Shanghai Composite (China) | 4,180.09 | +19.92 | +0.48% |
| Straits Times (Singapore) | 4,941.96 | +14.58 | +0.30% |
| KOSDAQ (South Korea) | 1,199.18 | −10.99 | −0.91% |
Source: CNBC Market Data
References
- Reuters / Yahoo Finance — “Global stocks mixed, oil falls on peace optimism” (May 7, 2026)
- Yahoo Finance — “Stock market today: Dow, S&P 500, Nasdaq futures tread water in wait for Iran-US deal update” (May 7, 2026)
- Yahoo Finance — “Arm Holdings Q4 fiscal 2026 earnings beat on AI demand” (May 7, 2026)
- Yahoo Finance — “Apple Flirts With Adding Intel, Samsung into Main Chip Supply Chain” (May 6, 2026)
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