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

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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