Overview
Chip and technology shares continued to drive markets higher across Asia as regional bourses caught up with this week's tech surge. Japan led the charge on Thursday after markets reopened following the Golden Week holiday, with the benchmark Nikkei rallying nearly 6% and tech-focused SoftBank seeing a near 20% jump in its shares.
These moves are part of a broader pattern this year in which Asia has experienced outsized gains in technology and semiconductor-related names. Tokyo's Nikkei is up 25% year-to-date, while Seoul has seen a far larger 75% increase over the same period. By comparison, the S&P 500 has advanced 8% and the Nasdaq is up 11%, underscoring that much of the most intense demand for chips and related equipment is concentrated outside the United States.
Wall Street nevertheless extended its climb to fresh record levels on Wednesday, with the S&P 500 rising about 1% as hopes for a U.S.-Iran peace agreement contributed to a near 8% drop in crude oil prices.
Market moves and indicators
Selected index and instrument moves cited during the session included:
- Nasdaq 100 (NDX) +2.08%
- S&P 500 (US500) +1.46%
- Nikkei 225 (JP225) +5.8%
- Brent crude (LCO) -2.58%
- WTI crude (CL) -2.96%
- SoftBank (9984) +18.44%
Oil prices moved lower into Thursday with Brent trading around $99 per barrel and WTI near $93 per barrel. The slide in crude weighed on bond yields, which fell as the energy-driven shock to markets softened.
In Europe, the STOXX 600 rose 2% on Wednesday and was trading roughly 2% below levels seen before the onset of the Iran conflict, though the index showed a pause in early trading on Thursday.
Geopolitical backdrop
Market sentiment has been influenced by developments around a potential U.S.-Iran agreement. Iran is reviewing a fresh U.S. proposal that would, if accepted, trigger 30 days of detailed negotiations aimed at reaching a comprehensive accord. While that prospect has helped push oil prices lower, military incidents in the Gulf and Lebanon continued sporadically, underscoring lingering tensions that could affect energy markets.
Macro and event calendar
On the macro front, attention is turning to U.S. labor data due on Friday. So far, the build-up to the payrolls release indicates that hiring has not suffered materially from a roughly two-month energy shock, with ADP's private sector jobs report for April coming in stronger than expected.
Other events and potential market-moving items include:
- U.S. weekly jobless claims (8:30 a.m. EDT)
- March consumer credit data (3 p.m. EDT)
- Speeches from New York Fed President John Williams, Minneapolis Fed President Neel Kashkari and Cleveland Fed official Beth Hammack
- U.S. corporate earnings from Airbnb, CoreWeave and McDonald's
- UK local elections taking place on Thursday
Looking ahead, market participants are also focusing on a planned summit between the U.S. President and China's leader next week, which could have implications for trade, technology and geopolitical tensions.
Political context
Thursday's local elections in the United Kingdom are being watched for their potential impact on the domestic political picture. Observers note the results could carry substantial weight for Prime Minister Keir Starmer and his standing as leader of the ruling Labour Party.
Chart of the day
The prevailing theme is that the AI and chip-related boom is not confined to Wall Street. Across Asia, chipmakers and suppliers of tech equipment have driven strong rallies in regional benchmark indexes, amplifying gains in Tokyo and Seoul.
Events and data listed are scheduled as noted. Market moves and percentages referenced reflect the session's reported figures.