Hopes for reopening Strait of Hormuz push Asian shares higher, as oil prices hold above USD 100

HONG KONG, May 7:  Asian shares jumped on Thursday, with Tokyo’s Nikkei 225 gaining 5.7 per cent to a record intraday high as investors waited to see if the US and Iran will strike a deal allowing tankers to deliver crude from the Persian Gulf again.

Japan’s benchmark Nikkei 225 index jumped 3,402 points to 62,915.87 as markets in Tokyo reopened following “Golden Week” holidays.

The Nikkei has gained about 18 per cent in the past three months and nearly 73 per cent in the past year, pushed higher by strong buying of tech shares that have benefited from the boom in artificial intelligence.

Elsewhere in Asia, the Hang Seng in Hong Kong gained 1.3 per cent to 26,559.86.

The S&P/ASX 200 in Australia was up 0.9 per cent at 8,870.70.

In South Korea, the Kospi slipped 0.4 per cent to 7,353.08 as traders sold to lock in profits after the benchmark jumped nearly 7 per cent a day earlier to barrel past 7,000 for the first time.

Taiwan’s Taiex surged 2.1 per cent.

On Wednesday, markets rallied worldwide after President Donald Trump said the Strait of Hormuz could be “OPEN TO ALL” if Iran accepts a reported agreement that the US president did not detail.

Oil prices fell nearly 8 per cent and the S&P 500 climbed 1.5 per cent for its best day in nearly a month, setting a fresh record. The Dow Jones Industrial Average jumped 1.2 per cent, and the Nasdaq composite rose 2 per cent.

However, optimism was tempered by continuing tensions. The US military fired on an Iranian oil tanker Wednesday as President Donald Trump sought to pressure Tehran into reaching a deal to end the war. The military said in a social media post that a fighter jet shot out the rudder of the tanker in the Gulf of Oman as the vessel tried to breach an American blockade of Iran’s ports.

Early Thursday in Asian trading, Brent crude oil rose 51 cents to USD 101.78 a barrel, while US benchmark crude oil gained 55 cents to USD 95.63 a barrel.

Oil prices sank Wednesday, and stock markets rallied worldwide on hopes that the United States and Iran are nearing a deal  to allow ships to deliver crude through the Strait of Hormuz.

The price for a barrel of Brent crude oil, the international standard, fell 7.8 per cent to USD 101.27, down from more than USD 115 early this week.

The effective closure of the strait due to the war has caused big trouble for the global economy because the conflict has blocked oil tankers from using it to exit the Persian Gulf.

A reopening could allow oil to flow freely again and remove pressure on inflation that’s driving prices up for all kinds of products  worldwide.

The price of Brent crude fell below USD 97 a barrel but then pushed above USD 100 after Trump threatened to start bombing “at a much higher level and intensity” if Iran does not accept the agreement.

US stocks remained resilient despite the war thanks partly to strong profit reports by big US companies for the start of 2026.

Chipmaker AMD helped lead the market Wednesday with a surge of 18.6 per cent after it joined the list of big-name companies topping expectations for both profit and revenue.

Super Micro Computer, rallied 24.5 per cent after likewise delivering stronger earnings than analysts expected. Nvidia, the chip company that became the poster child of the AI boom, rose 5.7 per cent and was the single strongest force lifting the S&P 500 because of its immense size.

CVS Health climbed 7.6 per cent after delivering better results for the first quarter than analysts expected and raising its financial forecasts for the full year. The Walt Disney Co.  gained 7.5 per cent after saying its “Zootopia 2” movie helped draw people to its streaming business, parks and cruise ships.

Outside of earnings reports, companies with big fuel bills jumped on hopes that oil prices will continue to ease. That included gains of 6.8 per cent for United Airlines, 6.8 per cent for Carnival and 8.8 per cent for Royal Caribbean.

In other dealings early Thursday, the US dollar fell to 156.32 Japanese yen from 156.40 yen. The euro rose to USD 1.1756 from USD 1.1747. (AP)