Markets across Asia started the week on a strong note, led by tech stocks, as investors took confidence from solid earnings and signs of possible progress in the Middle East.
In Hong Kong, shares climbed along with most regional markets. The rally followed another strong session on Wall Street, where companies like Apple, Google, Microsoft, and Samsung reported better-than-expected earnings.
That reignited interest in the AI sector, which has been a major driver of market gains recently.
According to FactSet, companies in the S&P 500 are on track for earnings growth of over 27% — the fastest pace in more than four years. That kind of growth is giving investors a reason to stay optimistic.
At the same time, geopolitical tensions are still in the background.
Iran has reportedly submitted a new proposal to end its conflict with the United States. The plan includes a 30-day timeline to stop the fighting, along with demands like lifting sanctions and removing U.S. forces from nearby areas.
There are also developments around the Strait of Hormuz, a key route for global oil. It remains effectively blocked, though former president Donald Trump said the U.S. could begin escorting ships through the area under a mission called “Project Freedom.”
However, Iran warned that any U.S. military involvement there could break the fragile ceasefire.
Oil prices reacted with some volatility:
- Brent crude hovered around $108
- U.S. crude stayed near $101
Analysts say prices could remain unstable as long as the situation in the Strait of Hormuz is unresolved.
Back in the markets, tech stocks were the clear winners.
- South Korea’s SK hynix jumped over 10%
- Samsung gained around 4%
- Taiwan’s TSMC surged nearly 7%
- Chinese tech firms like Alibaba pushed Hong Kong higher
Overall, markets in Seoul, Taipei, Singapore, Manila, and Jakarta all posted gains, while Tokyo and Shanghai were closed for holidays.
There were also moves in currency markets.
The Japanese yen held steady after reports that Japan may have stepped in to support it, possibly spending around $32 billion — its first intervention since 2024.
Despite the strong start to May, some analysts are cautious.
After a big April rally, markets are already pricing in a lot of good news. The coming weeks will show whether strong earnings and easing tensions are enough to keep the momentum going — or if volatility returns.
