Asia open: Global stock markets rally on US-Iran peace hopes; tech drives S&P 500 to record highs

• Global risk appetite surged on US–Iran peace hopes: Reports of a potential peace memorandum between the US and Iran drove a sharp rally in global equities and a steep decline in oil prices, easing inflation concerns and boosting sentiment across risk assets.
• Tech and semiconductors powered record equity highs: The S&P 500, Nasdaq 100, and several Asian indices hit fresh record highs, led by strong momentum in semiconductor stocks after upbeat earnings and AI-related partnership developments involving Intel and AMD.
• USD weakened while gold and JPY gained: The US dollar fell broadly as geopolitical risk premiums eased, triggering a 3%+ surge in gold above $4,700 and renewed strength in the Japanese yen amid suspected intervention and bearish technical signals on USD/JPY.
• Chart of the day: USD/JPY has further potential downside pressure below 157.30/157.55 key short-term resistance. Next intermediate supports at 154.65 and 154.05.

• US-Iran peace deal hopes: Oil prices slumped and global stocks surged following news that the U.S. and Iran are nearing a memorandum to end the conflict, with the US concluding offensive operations.
• US equities hit record highs: Bloomberg data highlights the S&P 500 closing at a record 7,259.22. The rally was heavily driven by the semiconductor sector, with Intel jumping 13% on Apple partnership reports and AMD soaring 16.5% after hours.
• Gold spikes past $4,700: Spot gold climbed over 3% to $4,703/oz, hitting a multi-week high as the prospect of peace dragged down the US Dollar and shifted safe-haven dynamics.
• Yen volatility persists: JPY rallied 1.8% to around 155.00 per USD on Wednesday, 8 May, Asian session on suspected “stealth intervention”.
• US ADP Employment beats expectations: Private payrolls increased by 109,000 in April, surpassing the forecast of 99,000, signaling continued labor market tightness that complicates the Fed’s easing path.

• Geopolitical de-escalation & energy Relief: The potential resolution of the Middle East conflict is rapidly pulling the extreme risk premium out of the energy markets. WTI crude falling back toward $100/bbl provides immediate relief to global inflation expectations.
• The AI semiconductor supercycle: The tech sector continues to decouple from broader macro anxieties. Exceptional earnings beats and strategic partnerships (like Intel/Apple) are reinforcing semiconductors as the primary growth engine for global equities.
• Dollar weakness and gold reallocation: The sudden drop in the US Dollar (spurred by peace hopes), has triggered an intraday massive capital rotation into gold, which surged around 3% as a preferred alternative asset.

• Equities: The S&P 500 (+1.5% to 7,365), Nasdaq 100 (+2.1% to 28,599), and Russell 2000 (+1.5% to 2,886) closed at record highs.DJIA (+1.2% to 49,910) lagged. In Europe, the DAX surged 2.1% to 24,918.
• Fixed Income: The US 30-year Treasury yield fell back below 5% (to 4.98%) as investors locked in rates. The 10-year yield remains anchored at 4.4%.
• FX: The US Dollar weakened broadly on the US-Iran peace news. The AUD/USD climbed to 0.7238, closing in on a 4-year high on upbeat risk appetite.
• Commodities: WTI Crude slumped toward $90,50/bbl on the US-Iran developments. Spot Gold spiked 3.2% to $4,703/oz, its highest since late April.

• Stock markets: An overnight 4.5% jump in the US SOX semiconductor index sets up a positive feedback loop back into key Asian stock markets. Nikkei 225 (+5.4% to 62,720 to hit a fresh all-time high), KOSPI (+0.2% to propel towards a new record high of 7,400), Hang Seng Index (+1.3% to 26,564), China A50 (+0.2% to 15,850 to hit a 52-month high), and STI (+0.3% to 4,944) at this time of writing.
• Currencies: The Australian Dollar (AUD) outperformed all regional peers following the rally seen in global stock markets. The Japanese Yen (JPY) has managed to find a floor at around 157.30/157.55 per USD on fears of further intervention,
• Economic Outlook: The region is expected to benefit significantly from declining energy import costs. If the Middle East peace deal is implemented, it will provide a significant economic boost for major oil importers such as Japan and South Korea.

1. US Initial Jobless Claims – 8.30 pm SGT: (consensus: 205K, previous week: 189K) Impact: USD, US stock indices, Short-end US Treasuries
2. Eurozone Retail Sales – 5.00 pm SGT: (consensus: -0.3% m/m, Feb: -0.2% m/m) Impact: EUR crosses, DAX
3. Ongoing US-Iran Peace Memorandum Developments Impact: All asset classes

The USD/JPY has staged a bearish breakdown below its minor “Ascending Wedge” configuration on Wednesday, 6 May 2026. In addition, in today’s opening Asian session (Thursday, 7 May 2026), its hourly RSI momentum indicator has flashed a bearish momentum condition below the 50 level.

These observations suggest the minor downtrend phase of the USD/JPY remains intact. Watch the 157.30/157.55 key short-term pivotal resistance for another potential down leg to expose the next intermediate supports at 154.65 and 154.05 (also the key 200-day moving average) (see Fig 1).

However, a clearance and an hourly close above 157.55 negates the bearish tone for a rebound towards the next intermediate resistances at 158.10 and 158.60 (the intersection of the 20-day and 50-day moving averages).

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Based in Singapore, Kelvin Wong is a well-established senior global macro strategist with over 15 years of experience trading and providing market research on foreign exchange, stock markets, and commodities.

Passionate about connecting the dots in the financial markets and sharing perspectives around trading and investment, Kelvin Wong is an expert in using a unique combination of fundamental and technical analyses, specializing in Elliott Wave and fund flow positioning, to pinpoint key reversal levels in the financial markets.

In addition, over the last ten years, Kelvin has conducted numerous market outlook and trading-related seminars, as well as technical analysis training courses, for thousands of retail traders.