Global financial markets commenced the trading week with significant momentum, as Asian bourses experienced rolling catch-ups following regional holidays. Japan’s benchmark Nikkei index surged almost 6% as markets reopened from Golden Week, driven by a near 20% leap in shares of tech-focused SoftBank. SoftBank is a major Japanese multinational conglomerate focused on extensive investments across technology, telecommunications, and internet businesses, holding significant stakes in numerous global tech firms. South Korea also saw substantial gains, contributing to a broader chip and tech equipment boom across Asia. Year-to-date, Tokyo’s gains stand at 25%, while Seoul boasts a remarkable 75% rise, eclipsing the S&P 500’s 8% and Nasdaq’s 11% advances.
Wall Street continued its upward trajectory, with the S&P 500 climbing another 1% yesterday, pushing towards new records. European markets also posted solid performance, as the STOXX 600 gained 2%, bringing it within 2% of pre-Iran conflict levels, although the index paused in early trading today. Crude oil prices retreated substantially, with Brent trading around US$99 and West Texas Intermediate (WTI) around US$93 per barrel, as hopes of a potential US-Iran peace deal gained traction. Iran is reportedly reviewing the latest US proposal, which could initiate 30 days of detailed negotiations.
In macroeconomic news, the lead-up to Friday’s crucial US payrolls release indicated resilience in hiring, with April’s ADP private sector jobs report surpassing expectations despite recent energy price shocks. Looking ahead, attention is also turning to next week’s anticipated summit between US and Chinese leaders. Domestically, Thursday brings significant local elections in the UK, which are expected to impact Prime Minister Keir Starmer’s standing within the ruling Labour Party. Investors are also monitoring upcoming US jobless claims and consumer credit data, alongside speeches from key Federal Reserve officials.
