Global equities continue to hit new record highs as investors grow optimistic that the US and Iran are moving closer to a deal that could ease tensions in the Middle East and restore oil shipments through the Strait of Hormuz.
The MSCI All Country World Index and MSCI’s Asian benchmark both reached all-time highs, while Japan’s Nikkei 225 surged 6% after reopening from a holiday break. Technology and AI-related stocks led gains across the region, with major advances in companies such as SoftBank and Taiwan Semiconductor. The rally followed strong earnings results on Wall Street, where roughly 80% of S&P 500 companies beat expectations, further fuelling investor confidence.
Markets were also supported by falling oil prices and easing inflation concerns, which reduced expectations for further Federal Reserve rate hikes. Brent crude remained below $102 a barrel on speculation that a US–Iran agreement could reopen trade routes, while gold rose for a third consecutive day as lower rate expectations boosted demand for non-yielding assets.
Strategists said the market’s strong “risk-on” mood reflects hopes for continued de-escalation, though some warn that investors may be overly optimistic and vulnerable to a “buy the rumour, sell the fact” reversal if a deal is finalised. Meanwhile, currency and bond markets remained relatively stable, with the yen closely watched amid speculation of Japanese intervention and Asian credit spreads narrowing to record lows.
