(April 16): Asian shares advanced on Thursday as investors piled back into equities on signs the US and Iran may extend a ceasefire, helping markets unwind war-driven risk premiums.
The MSCI Asia-Pacific Index rose 1%, nearing levels seen before the war began, as optimism over a potential US-Iran ceasefire and strong US corporate earnings lifted sentiment. Earlier, the S&P 500 and Nasdaq 100 indices both closed at record highs as traders bet a de-escalation of the Middle East conflict will ease oil prices and lift economic growth.
Shares in China held their gains after economic growth rebounded more than expected in the first quarter of 2026.
Helping sentiment, global crude benchmark Brent held around US$95 ($120.67) a barrel, well below last month’s peak of nearly US$120. As Middle East tensions cooled, the dollar — which had emerged as the haven of choice during the conflict — was a touch weaker on Thursday, with the Bloomberg Dollar Spot Index set for its longest losing streak since December 2006.
Investors have returned to equities despite lingering uncertainty over the war’s trajectory, as expectations grow that the US and Iran will continue negotiations and avoid further escalation. Renewed enthusiasm for technology stocks has helped drive a sharp reversal from last month’s sell-off, which pushed several gauges into technical correction.
See also: Asian stocks rise, oil drops on US-Iran peace push
“Traders across Asia are clinging tightly to the hope that a new round of US-Iran peace talks will materialise in the coming days,” said Tim Waterer, the chief market analyst of KCM Trade. “The sight of oil trading at sub-US$100 levels and hopes of a diplomatic breakthrough are combining to breathe life back into equities.”
The US and Iran are considering extending their ceasefire that ends on Tuesday by another two weeks to allow more time to negotiate a peace agreement, according to a person familiar with the matter.
Mediators between the warring sides are trying to set up technical talks to resolve the most contentious issues, said the person, who asked not to be named discussing sensitive matters. Those include reopening the Strait of Hormuz and Iran’s nuclear enrichment, they said.
See also: Asian stocks rise led by tech; oil drops on Iran
Elsewhere, gold rose 0.6% to about US$4,820 an ounce, while silver jumped 1.5% to about US$80 an ounce. Treasuries advanced, with the yield on the benchmark 10-year falling one basis point to 4.27% as lower oil prices reduced the risk of stoking inflation.
“Markets are just returning back to pre war flows and positioning as market has looked past the war and moved on from conflict despite not being resolved,” said Matthew Haupt, a portfolio manager at Wilson Asset Management. “From here we need new news for direction to go higher as this systematic buying is largely done.”
Meanwhile on Wall Street, technology stocks led the gains after having lagged for much of the year. The S&P 500 Index has climbed in 10 of the past 11 sessions, while the Nasdaq 100 Index rose for an 11th consecutive day on Wednesday — the longest winning streak since December 2019.
Also helping the sentiment was strong earnings. Bank of America Corp and Morgan Stanley rose as their equity traders posted strong revenue beats.
“It looked like a rotation day today within the tech sector, as investors sold the high flying chip stocks and bought the beaten down software names,” said Matt Maley of Miller Tabak.
The prospect of renewed negotiations has helped sustain a broader risk-on tone across markets. Emerging-market stocks extended gains with the MSCI Emerging Markets Index climbing 0.8% on Thursday.
Benchmarks in Singapore and Taiwan, as well as the MSCI Latin America Index, have all reversed losses that came after the US and Israel attacked Iran. China’s CSI 300 Index joined that list on Wednesday. Also, Taiwan overtook the UK in stock market value as the island’s tech firms regained favour amid hopes for further de-escalation in the Iran war.
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“North Asia, EM Europe and Latin America have led the relief rally, while oil-importing parts of Asean and India have lagged,” Goldman Sachs analysts including Kamakshya Trivedi wrote in a report. “We expect this differentiation to persist given ongoing physical disruptions.”
Corporate news:
- The Trump administration wants automakers and other American manufacturers to play a larger role in weapons production. Senior defence officials have held talks about producing weapons and other military supplies with the top executives of companies including General Motors and Ford, The Wall Street Journal reported.
- Jane Street Group has taken an additional US$1 billion stake in AI cloud services provider CoreWeave Inc and plans to spend about US$6 billion on the company’s technology offerings.
- Four of the six largest US banks reduced their headcount during the first three months of the year, with Wells Fargo & Co leading the way with more than 4,000 cuts, while JPMorgan Chase & Co and Morgan Stanley added staff.
- Contemporary Amperex Technology Co Ltd is planning to expand its footprint in critical minerals and strengthen supply-chain security.
Some of the main moves in markets:
Stocks
- S&P 500 futures were up 0.2% as of 10.50am Tokyo time on Thursday
- Nikkei 225 futures (OSE) rose 1.6%
- Japan’s Topix rose 1.2%
- Australia’s S&P/ASX 200 fell 0.2%
- Hong Kong’s Hang Seng rose 0.9%
- The Shanghai Composite rose 0.4%
- Euro Stoxx 50 futures rose 0.2%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at US$1.1803
- The Japanese yen rose 0.1% to 158.78 per dollar
- The offshore yuan was little changed at 6.8157 per dollar
Cryptocurrencies
- Bitcoin fell 0.2% to US$74,720.49
- Ether fell 0.3% to US$2,356.21
Bonds
- The yield on 10-year Treasuries declined one basis point to 4.27%
- Japan’s 10-year yield advanced 1.5 basis points to 2.420%
- Australia’s 10-year yield advanced two basis points to 4.95%
Commodities
- West Texas Intermediate crude was little changed
- Spot gold rose 0.6% to US$4,820.18 an ounce
Uploaded by Tham Yek Lee
