{"id":62173,"date":"2026-05-20T21:38:22","date_gmt":"2026-05-21T01:38:22","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/asian-markets-surge-on-us-iran-optimism-nikkei-hits-record-highs-while-nvidia-stumbles\/62173\/"},"modified":"2026-05-20T21:38:22","modified_gmt":"2026-05-21T01:38:22","slug":"asian-markets-surge-on-us-iran-optimism-nikkei-hits-record-highs-while-nvidia-stumbles","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/asian-markets-surge-on-us-iran-optimism-nikkei-hits-record-highs-while-nvidia-stumbles\/62173\/","title":{"rendered":"Asian Markets Surge on US-Iran Optimism; Nikkei Hits Record Highs While Nvidia Stumbles"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Asian equities rallied sharply<\/strong>, led by a <strong>3.54% jump in the Nikkei 225<\/strong> to a record <strong>61,920.75<\/strong> and a <strong>4% surge in South Korean stocks<\/strong>, fueled by optimism over a potential US-Iran diplomatic breakthrough.<\/li>\n<li><strong>Oil prices recovered to $99.28\/bbl<\/strong> as traders reacted to President Trump\u2019s &quot;final stages&quot; remarks regarding Iran negotiations, raising hopes for a near-term restart of flows through the <strong>Strait of Hormuz<\/strong>.<\/li>\n<li><strong>The People&#39;s Bank of China (PBOC)<\/strong> set the yuan reference rate at <strong>6.8349<\/strong>, its strongest level since February 2023, even as China&#39;s share of SWIFT global payments dipped to <strong>2.85%<\/strong>.<\/li>\n<li><strong>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> shares faced downward pressure despite an <strong>$80 billion buyback<\/strong> announcement, as investors offered a lukewarm response to its <strong>$91 billion sales forecast<\/strong>.<\/li>\n<li><strong>Geopolitical tensions persist<\/strong> in the background, with a <strong>$14 billion US arms package for Taiwan<\/strong> reportedly putting a high-level Pentagon visit to Beijing at risk.<\/li>\n<\/ul>\n<h2>Asian Markets Rally on Diplomatic Hopes<\/h2>\n<p>Asian markets experienced a broad-based rally on Thursday, tracking gains on Wall Street as geopolitical tensions showed signs of easing. The <strong>MSCI Asia Pacific Index climbed 1.2%<\/strong>, supported by a massive <strong>7% surge<\/strong> in Samsung Electronics (<a href=\"\/stock\/005930.KS\">005930.KS<\/a>) after the tech giant successfully avoided a planned labor strike.<\/p>\n<p>In Japan, the <strong>Nikkei 225<\/strong> advanced further into record territory, climbing <strong>3.54% to settle at 61,920.75<\/strong>. This rally occurred despite mixed economic signals, as <strong>Japan\u2019s Manufacturing PMI<\/strong> edged down to <strong>54.5<\/strong> while the <strong>Services PMI<\/strong> hit the neutral <strong>50.0<\/strong> mark.<\/p>\n<p>Taiwanese equities also saw significant strength, gaining over <strong>2.6%<\/strong>. Investors focused on comments from Taiwan\u2019s Foreign Ministry, which stated that <strong>President Lai<\/strong> remains open to talks with <strong>President Trump<\/strong> to maintain stability in the Taiwan Strait.<\/p>\n<h2>Energy and Commodities Rebound<\/h2>\n<p>Crude oil futures reversed a two-day decline, with <strong>U.S. crude gaining $1.02 to reach $99.28\/bbl<\/strong>. The recovery is largely attributed to technical buying and renewed optimism that a deal with Iran could stabilize energy corridors.<\/p>\n<p>In the metals market, the most-traded <strong>tin contract in Shanghai surged over 4%<\/strong> amid aggressive buying. Conversely, <strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">gold<\/a> edged lower<\/strong> as U.S. Treasury yields saw a slight uptick, dampening the appeal of the non-yielding precious metal.<\/p>\n<p>The Australian dollar showed signs of strength against the yen, with analysts suggesting risks are skewed to the upside. This comes as <strong>Australia&#39;s consumer inflation expectations<\/strong> for May eased to <strong>5.6%<\/strong>, down from a previous <strong>5.9%<\/strong>.<\/p>\n<h2>Tech and Corporate Developments<\/h2>\n<p>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>) provided a massive <strong>$91 billion sales forecast<\/strong> and raised its dividend to <strong>25 cents<\/strong>, but the stock struggled to maintain momentum. The market&#39;s &quot;lukewarm&quot; reaction suggests that high expectations for AI-driven growth are already heavily priced in, despite the company&#39;s new <strong>$80 billion buyback program<\/strong>.<\/p>\n<p>In the AI sector, <strong>Anthropic<\/strong> is reportedly on track for its first profitable quarter, marking a significant milestone for the high-growth startup. Meanwhile, the <strong>Cannes Film Festival<\/strong> saw the premiere of <em>\u2018Hell Grind,\u2019<\/em> a 95-minute film generated entirely by AI, highlighting the technology&#39;s rapid encroachment into traditional media.<\/p>\n<p>Elon Musk&#39;s <strong>SpaceX<\/strong> made headlines by excluding China from its IPO markets while simultaneously labeling the nation a competitive threat. In the automotive space, China\u2019s <strong>Chery<\/strong> expects its overseas EV sales to top <strong>1 million units<\/strong> as it capitalizes on the ongoing global energy crisis.<\/p>\n<h2>Central Bank and Currency Movements<\/h2>\n<p>The <strong>PBOC<\/strong> significantly strengthened the yuan, setting the fix at <strong>6.8349<\/strong>, the firmest level in over three years. This move signals Beijing&#39;s intent to support the currency&#39;s value despite a slight decline in its global payment usage, which fell to <strong>2.85% in April<\/strong>.<\/p>\n<p>In the bond market, <strong>Japanese Government Bond (JGB)<\/strong> yields eased across the curve. The <strong>5-year JGB yield fell 1.5 basis points to 2.020%<\/strong>, while the <strong>2-year yield dipped to 1.445%<\/strong>, reflecting a slight cooling in domestic rate-hike bets.<\/p>\n<p>European markets appear headed for a softer open, with <strong>Euro Stoxx 50 and DAX futures down 0.2%<\/strong>. Traders remain cautious as they digest the implications of the Asian rally and wait for further clarity on the Federal Reserve&#39;s next move, which many still expect to be a hike.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Asian equities rallied sharply, led by a 3.54% jump in the Nikkei 225 to a record 61,920.75 and [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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