Asian stocks track Wall Street tech rally as Seoul, Taipei hit records
Investors were also cheered by news that Iran had submitted fresh proposals to end its war with the United States.
Bull statues near screens showing the Hang Seng stock index and stock prices outside Exchange Square, in Hong Kong on Feb 3, 2026. (File photo: Reuters/Tyrone Siu)
HONG KONG: Tech firms led a rally across most Asian markets Monday (May 4), tracking another healthy day on Wall Street fuelled by more strong earnings as Seoul and Taipei hit record highs.
Investors were also cheered by news that Iran had submitted fresh proposals to end its war with the United States and reopen the crucial Strait of Hormuz, though oil price recovered most of Friday's losses.
While the Middle East crisis continued to rumble along, with the waterway still effectively choked off, dealers turned their focus on the corporate world as they jumped back into the AI trade that has propelled several markets to record highs.
Forecast-beating reports from Apple, Google, Microsoft and Samsung have reawakened interest in the artificial intelligence sector after the market tumult caused by the US-Israel strikes on Iran at the end of February.
Companies in the S&P 500 are on track to report earnings growth of 27.1 per cent, the highest rate in more than four years, according to Factset.
Investors have been playing a waiting game since a ceasefire was agreed at the start of April, with just one round of talks taking place that came to nothing.
In the meantime, the United States maintains a blockade of Iranian ports and Tehran is keeping the strait - through which a fifth of global oil and gas usually passes - closed.
Optimism was given a boost on Friday after an Iranian report that Tehran had delivered the text of a new proposal to mediator Pakistan the night before.
The offer was said by the Tasnim News Agency as calling for a complete end to the conflict within 30 days, along with guarantees against renewed strikes.
It also reiterated previous demands that include the withdrawal of US forces from near Iran, the blockade to be lifted and sanctions removed.
Iran's foreign ministry said Tehran had submitted a 14-point plan "focused on ending the war" and that Washington had already responded to it in a message to Pakistani mediators, which Iran was reviewing.
Donald Trump said on Sunday that "very positive discussions" were underway and that US forces will soon start escorting ships out of the Strait of Hormuz in a "humanitarian gesture" dubbed "Project Freedom".
In a post on Truth Social, the US president said many of the marooned ships "were running low on food", but offered few details on how the mission would work.
US Central Command said on X that its forces would begin supporting Project Freedom with guided-missile destroyers, over 100 land and sea-based aircraft, multi-domain unmanned platforms and 15,000 service members.
However, a senior Iranian official warned Monday that Tehran would consider any US attempt to interfere in the Strait of Hormuz a breach of the ongoing ceasefire.
Oil prices climbed around 2 per cent on Monday after dropping as much as 3 per cent on Friday.
"Whether this will lead to sustained weakness in oil remains to be seen," wrote Fawad Razaqzada at Forex.com.
"In my view, as long as the Strait of Hormuz situation remains unresolved, these types of headlines are likely to provide only temporary pressure on prices rather than drive a prolonged move lower."
Equities started the month on a broadly positive note, following all-time highs for the S&P 500 and Nasdaq in New York on Friday.
Seoul surged more than 5 per cent and Taipei jumped more than 4 per cent to hit fresh records.
South Korean chip giant SK hynix was the standout, piling on more than 12.5 per cent, while rival Samsung was up more than 5 per cent. Taiwanese counterpart TSMC was almost 6.6 per cent up.
Hong Kong was lifted by a surge in Chinese tech firms including Alibaba, while Mumbai, Singapore, Manila, Wellington and Jakarta were also up.
Paris fell at the open and Frankfurt rose.
Tokyo, Shanghai and London were closed for holidays.
However, Chris Weston at Pepperstone said: "After a strong April for risk assets, we need to remain open-minded about what May will bring.
"This week should provide early signals, but with risk assets pricing in a lot of good news, and rightly so, the time for that to be validated may now be here."
The yen spiked earlier Monday against the dollar, prompting speculation of another intervention. The currency moved sharply higher against the greenback on Friday, with media reports saying that Tokyo had spent US$31 billion propping up the beleaguered currency.
Finance Minister Satsuki Katayama declined to comment on Monday.
