Asia markets jump on record Nikkei surge

May 07, 2026 (MLN): Asia markets rallied sharply on Thursday, led by a record-breaking surge in Japanese equities, as investors looked past escalating tensions in the Middle East and focused on optimism surrounding a possible diplomatic breakthrough between Washington and Tehran.

Japan’s benchmark Nikkei 225 soared more than 5%, crossing the 62,000-point mark for the first time ever, driven by strong gains in technology, financial, and materials stocks. The broader TOPIX also moved higher, adding 2.37%, according to CNBC.

Investor appetite for Japanese equities strengthened after heavyweight tech investment firm SoftBank Group surged over 13% during the session.

Chip-related and industrial shares also posted outsized gains, with Ibiden Co., Ltd. climbing 17%, while metals producer Mitsui Kinziku advanced 16%.

Semiconductor manufacturer Renesas Electronics Corporation jumped 13%, and chemical maker Tosoh Corporation gained 12%.

Across the region, sentiment remained broadly positive despite renewed geopolitical concerns.

Australia’s S&P/ASX 200 rose 0.9%, while Hong Kong’s Hang Seng Index gained 1.47%. Mainland China’s CSI 300 edged 0.38% higher.

However, South Korean markets bucked the trend, with the KOSPI slipping 0.68%, while the small-cap KOSDAQ declined 0.56%.

Market sentiment remained sensitive to developments in the Middle East after U.S. President Donald Trump warned that Iran could face military action “at a much higher level” if it failed to finalize a peace agreement with Washington.

Despite the rhetoric, investors drew encouragement from reports suggesting negotiations between the United States and Iran were progressing toward a potential resolution.

In a post on Truth Social, Trump stated that the U.S. military campaign dubbed “Operation Epic Fury” could conclude if Tehran accepted terms already discussed.

He further indicated that such an agreement could reopen the strategically critical Strait of Hormuz to global shipping, including Iranian vessels.

Oil prices remained elevated amid the geopolitical uncertainty. West Texas Intermediate crude futures for June delivery rose 0.92% to $95.95 per barrel.

Meanwhile, U.S. stock futures traded cautiously after Wall Street closed at fresh record highs overnight. Futures tied to the S&P 500 and Nasdaq-100 dipped around 0.1%, while Dow Jones Industrial Average futures slipped marginally.

In the previous session, U.S. equities rallied strongly on hopes of easing geopolitical tensions.

The S&P 500 gained 1.46% to close at 7,365.12, while the Nasdaq Composite surged 2.02% to finish at a record 25,838.94.

The Dow Jones Industrial Average climbed 612 points, ending the day at 49,910.59.

Copyright Mettis Link News

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