Access all our platforms from a single account.
Asia Market Quick Take – 07 May, 2026
Key points:
- Macro: US sends one page proposal to end conflict and open SoH
- Equities: Markets rise to new highs; AMD gains 19% after strong results
- FX: USD slides on US-Iran peace hopes; JPY jumps on suspected Japan intervention
- Commodities: Oil slumped as precious and base metals rallied
- Fixed income: Global bonds rallied, with Bunds and Gilts joining US Treasuries
------------------------------------------------------------------
.png?la=en-sg)
Disclaimer: Past performance does not indicate future performance.
Macro:
- The US reportedly sent a one-page proposal via Pakistan to end the conflict and gradually reopen the Strait of Hormuz, with Iran expected to respond within days. Nuclear talks would follow later, as Trump faces rising pressure to end the war amid surging energy prices and growth and inflation concerns.
- BOJ members said a rate hike would be appropriate if the outlook is met, with one noting the policy rate is still well below neutral.
- US private payrolls rose by 109,000 in April 2026, beating forecasts. Services added 94,000 jobs and goods producers 15,000, led by construction. Small firms added 65,000 jobs, large 42,000, and medium 2,000, consistent with a “low-hire, low-fire” labor market.
Equities:
- US - US equity markets surged to fresh records on Wednesday as optimism grew over a potential US-Iran peace deal and strong semiconductor earnings. S&P 500 closed 1.5% higher at 7,365.12, marking its largest gain since April 8. Nasdaq 100 jumped 2.1%, reaching its 10th record close of 2026 at 25,838.94. Advanced Micro Devices led the rally, soaring 19% after strong quarterly results impressed investors, while Super Micro Computer surged 24.5%. Disney gained 7.5% after beating earnings estimates as streaming and parks drive revenue growth despite geopolitical uncertainty. After-hours movers include Arm holdings which fell 6.4% despite raising sales forecast on surging AI data centre demand after executives said in the conference call that they have not secured supplies to meet demand for their new chip. Coherent also fell 7.15% despite reporting earnings topped estimates with gross margins rising.
- EU - European equity markets rallied sharply on Wednesday amid renewed hopes for a US-Iran peace agreement. The Stoxx Europe 600 Index climbed 2.2% to 623.25, its biggest gain since April 8, with banks leading the advance. Germany's DAX surged 2.1% to 24,918.69, with MTU Aero Engines gaining 10.1%. The FTSE 100 rose 2.15% to 10,438.66, led by HSBC Holdings up 5.0% and Fresnillo up 11.1%. The Euro Stoxx 50 jumped 2.68% to 6,027.13. Switzerland's SMI Index advanced 1.8%, with Richemont contributing the most to gains. Novo Nordisk raised 2026 annual profit guidance as Wegovy, its weight loss pill performed better than expected in Q1, reaching 2.26b Kroner vs 1.16b Kroner est. The stock rose 2.5% by the end of the session.
- Asia - Asian equity markets posted strong gains on Wednesday, driven by technology stocks and optimism over potential US-Iran peace talks. South Korea's Kospi Index soared 6.5% to shatter the 7,000 milestone for the first time, bringing its year-to-date gain to 75%. Samsung Electronics climbed 14.4%, pushing its market capitalization above $1 trillion. Hong Kong's Hang Seng Index rose 1.2% to 26,213.78, with HSBC Holdings up 3.3% and Xinyi Glass surging 9.8%. China's Shanghai Composite Index closed up 1.2% at 4,160.17. Singapore's Straits Times Index slipped 0.1% to 4,920.61 on May 5. This morning UOB reported Q1 earnings of S$1.44b that fell 4% yoy on lower net interest income but beat the estimate of S$1.39b. Japanese markets were closed for Golden Week holidays but Nikkei 225 futures traded at 61,920, suggesting a strong catch-up rally when markets reopen today.
Earnings this week:
- Thursday: UOB, Block, Shell, Gilead Sciences, Airbnb, Expedia, McDonald, Cloudflare, Coinbase, IREN
- Friday: Toyota, Sony, NTT, OCBC, Japan Tobacco, Macquarie, Commerzbank
FX:
- USD fell on optimism the US and Iran may be nearing a deal to end the war, pushing the Bloomberg Dollar Spot Index down 0.6% to its lowest since Feb. 27. Iran is reviewing a US proposal on reopening Hormuz and easing port blockades, though analysts warn it’s too soon to celebrate.
- USDJPY traded about 1% lower at 156.36 after briefly sliding to 155.04, a move that fuelled speculation Japanese authorities stepped in to support the yen. Societe Generale strategists said Japan may allow USDJPY to fall toward 150, but not back to the 140 area, arguing Tokyo doesn’t want a deflationary currency surge yet still sees the yen as “absurdly undervalued.”
- EURUSD rose 0.5% to 1.1749 and GBPUSD gained 0.4% to 1.3594, with options activity showing little sign of last‑minute hedging ahead of Thursday’s UK local elections.
Commodities:
- WTI crude oil plunged 7% to settle at $95.08 per barrel, while Brent crude fell 7.83% to $101.27, dropping below $100 intraday for the first time since April on rising hopes of a US-Iran peace agreement.
- Gold jumped on Wednesday as Treasury yields fell and safe-haven demand persisted. Comex silver settled 5.07% higher at $76.811, its largest one-day gain since April 14.
- LME 3-month copper closed $258 higher at $13,392 per ton, benefiting from improved risk sentiment and hopes for easing geopolitical tensions.
Fixed income:
- US Treasury yields fell across the curve as oil prices retreated. The 30-year yield declined 4 basis points to 4.942%, its lowest since April 27. The 10-year yield fell to 4.354%, while the 2-year yield dropped to 3.867%.
- Global bonds from Germany to the UK rallied alongside US Treasuries. The 2-year to 10-year yield spread widened to 48.4 basis points.
- Municipal bond yields fell across the curve, with 30-year yields declining 3 basis points to 4.28%. The Treasury announced it would maintain stable coupon auction sizes for at least the next several quarters.
For a global look at markets – go to Inspiration.
This content is marketing content and should not be considered investment advice. Trading financial instruments carries risks and historic performance is not a guarantee for future performance.
The instrument(s) mentioned in this content may be issued by a partner, from which Saxo receives promotion, payment or retrocessions. While Saxo receives compensation from these partnerships, all content is conducted with the intention of providing clients with valuable options and information.