Global equities rallied to fresh records as easing geopolitical tensions and renewed enthusiasm around artificial intelligence boosted investor sentiment.
Asian stocks surged, led by technology shares, after President Donald Trump signalled progress toward a potential agreement with Iran, raising hopes for reduced conflict in the Middle East. South Korea’s Kospi jumped more than 6% to an all-time high, driven by a 15% surge in Samsung Electronics that pushed the company’s valuation above $1 trillion. Markets were further supported by strong earnings from AI-related firms such as AMD and Super Micro Computer, reinforcing expectations for continued growth in semiconductor and high-performance computing demand.
At the same time, oil prices fell as traders anticipated lower risks to global energy supplies if tensions with Iran continue to ease, with Brent crude dropping below $109 a barrel. The weaker oil outlook improved inflation expectations and supported gains in global stocks and bonds, helping US Treasury yields retreat from recent highs.
Currency markets remained volatile, however, as the yen strengthened sharply amid speculation that Japanese authorities may intervene again to support the currency after last week’s market action.
Despite improving market sentiment, analysts cautioned that disruptions in the Strait of Hormuz and broader energy markets may take time to normalise, meaning the optimistic market reaction could still outpace conditions on the ground.
