China shares edge up on US-Iran peace deal hopes
China stock edged higher on Thursday, joining a broader rally in the region, as hopes of a U.S.-Iran peace deal lifted risk appetite, while Nvidia’s stellar earnings boosted chip shares.
China’s blue-chip CSI300 index was up 0.6 percent by the lunch break, while the Shanghai Composite index was flat at 4,162.37 points.
In Hong Kong, the benchmark Hang Seng Index was largely flat at 25,648.28.
U.S. President Donald Trump said on Wednesday that negotiations with Iran were in the final stage, suggesting he was prepared to wait a few days to “get the right answers” from Tehran, but also warned of renewed attacks if it did not agree to a deal.
“The easing of the U.S.-Iran conflict and the drop in oil prices may boost market sentiment and drive a rebound in equity indices,” analysts at Nanhua Futures said in a note.
Meanwhile, tech optimism boosted by Nvidia’s blockbuster growth could continue driving out-performance in small- and mid-cap indexes, they said.
The semiconductor sector surged before pulling back. The CSI All-Share Semiconductor Products and Equipment Index rose as much as 3.2 percent to a record before turning lower 0.4 percent by midday break.
European equities ease
European shares dipped on Thursday, as investors remained cautious while awaiting further developments in U.S.-Iran peace talks.
Iran said it was reviewing Washington’s latest response to end the war, while U.S. President Donald Trump said he was prepared to wait to “get the right answers” from Tehran, but attacks would renew if no deal was reached.
The pan-European STOXX 600 was down 0.2 percent at 618.79 points, as of 0701 GMT, after ending up 1.5 percent higher on Wednesday near two-week highs.
European equities have been unable to bounce back to pre-war levels as the region’s dependence on oil imports and small AI tech exposure has held it back, while global shares have rallied.
Sources told Reuters that the case for a European Central Bank rate hike in June was nearly sealed, but the bank is likely to be noncommittal about a further move.
Money markets currently price in more than two rate hikes from the ECB before year-end.
South Korea’s KOSPI jumps 6pc
South Korean shares climbed more than 6 percent on Thursday as investors cheered Samsung Electronics’ tentative deal with its union on bonus payouts, averting a strike. The won weakened, while the benchmark bond yield fell.
The benchmark KOSPI was up 476.46 points, or 6.61 percent, at 7,685.41, as of 0134 GMT.
Among index heavyweights, chipmaker Samsung Electronics rose 6.70 percent, while peer SK Hynix gained 9.34 percent. Battery maker LG Energy Solution climbed 3.25 percent.
Shares of Hyundai Motor and sister automaker Kia Corp were up 7.09 percent and 9.50 percent, respectively.
Steelmaker POSCO Holdings added 4.68 percent, while drugmaker Samsung BioLogics rose 4.11 percent.
Samsung Electronics’ union said the planned 18-day strike by nearly 48,000 members would be suspended while the tentative 11th-hour deal is put to a vote between May 22 and May 27. The pay deal would potentially avert a strike that threatened to hit South Korea’s economy and global chip supply.
Lifting market sentiment, early data showed on Thursday that South Korea’s exports in the first 20 days of May jumped 64.8 percent from a year earlier.
Australia shares extend gain
The Australian share benchmark extended its advance slightly on Thursday, after local monthly jobs data surprised investors with signs of loosening and curbed expectations of a near-term rate hike, while hopes rose for a U.S.-Iran peace deal.
The S&P/ASX 200 index rose 1.6 percent to 8,629.80 as of 0213 GMT, after rising 1.5 percent earlier. The benchmark shed 1.3 percent on Wednesday to close below the key psychological level of 8,500 for the first time since end-March.
U.S. President Donald Trump said that negotiations with Iran were in the final stages, while warning of further attacks unless Iran agrees to a deal. Trump added that he was willing to wait a few days for the “right answer” from Iran.
That sent crude prices down 6 percent overnight, tempering energy-fueled inflationary concerns and the risk of an immediate monetary policy tightening.
Back in Australia, net employment declined by 18,600 in April, far below the market forecast of a 15,000 gain, according to the Australian Bureau of Statistics data.
It led to the market scaling back bets for a rate hike in the Reserve Bank of Australia’s June meeting to 10 percent from 20 percent earlier.
Japan’s Nikkei rallies on fresh optimism over AI
Japan’s Nikkei share average climbed more than 3.5 percent on Thursday, its biggest gain in two weeks, on renewed enthusiasm for technology stocks and easing geopolitical tensions linked to the Iran war.
The benchmark Nikkei 225 Index climbed 3.58 percent to 61,945.34, and is set for its sharpest daily gain since May 7, if the current momentum holds.
The broader Topix climbed 2.21 percent to 3,875.34.
The Nikkei mirrored Wall Street gains ahead of earnings from AI bellwether Nvidia, which forecast sales above market estimates.
Oil prices dropped sharply overnight after U.S. President Donald Trump said negotiations to end the war in Iran were in the final stages, easing supply concerns.
Investor sentiment also got a boost from an averted labour strike at Samsung Electronics, which could have disrupted South Korea’s economy and global chip supply, and from reports that OpenAI is preparing to go public. SoftBank Group , a major investor in the company and other AI ventures, surged to its daily limit.
Indian shares open higher
Indian shares opened higher on Thursday, supported by a sharp drop in oil as investors assessed signs that the US may be nearing a deal with Iran to end the Middle East conflict.
The benchmark Nifty 50 rose 0.72 percent to 23,830.05 and the BSE Sensex gained 0.55 percent to 75,732.42, as of 9:15 a.m. IST.