Asia Shares Hit Records on AI Optimism, Ceasefire Worries

Global equity markets pushed to fresh record highs as investor demand for artificial intelligence-related stocks offset concerns about the fragile US‑Iran ceasefire. The Nasdaq 100, S&P 500, Japan’s Nikkei 225 and South Korea’s KOSPI all reached new peaks in the latest session.

Technology names led gains in the United States while energy stocks advanced on higher crude after disruptions in the Strait of Hormuz tightened supply. The technology sector rose about 1% and the energy sector around 2.6%. The Philadelphia semiconductor index also set a new high with a gain near 2.6%.

Rising oil prices lifted inflation expectations and prompted more hawkish commentary from policymakers, supporting a view of interest rates staying higher for longer. US Treasury yields climbed across the curve, and a weaker-than-expected three-year auction added upward pressure on short-term yields. The US dollar strengthened, and regional currencies including the Japanese yen and South Korean won declined even as local equities rallied.

Corporate activity reflected the focus on AI. Alphabet and Amazon issued debt in lower-yielding overseas currencies such as the Japanese yen and Swiss franc to finance AI infrastructure without tapping cash reserves.

Market concentration remained pronounced, with the largest US companies accounting for a substantial share of total market capitalization; the top 10 firms make up roughly one-third of market value.

Asian markets broadly outperformed. The Nikkei and KOSPI reached record highs and MSCI’s Asia ex-Japan index climbed to a fresh peak. China’s onshore A‑share market rose to an 11‑year high after April trade data showed a wider surplus and higher price pressures, while unemployment edged up. Hong Kong futures rebounded from their 20‑day moving average, with short-term support noted in the 26,210–26,100 band.

Commodities reflected both growth optimism and supply risk. Oil jumped about 3%, trading roughly $3 higher per barrel as flows through the Strait of Hormuz remained disrupted. Silver rose about 7% to a two-month high, while gold recorded a modest gain as higher Treasury yields reduced its appeal.

Markets were focused on data and policy that could alter the outlook. The US consumer price index for April is due Tuesday, with consensus forecasts pointing to a headline rate near 3.7% year-over-year. Chicago Fed President Austan Goolsbee warned that the path for monetary policy could include further rate increases if inflation momentum continues.

On geopolitics, President Donald Trump described the ceasefire with Iran as “on life support” and called Iran’s recent proposal “unacceptable.” He is scheduled to meet Chinese leader Xi Jinping soon in talks expected to cover Iran, nuclear matters, trade and AI, and a large delegation of US corporate executives is set to accompany him.

Asset managers reported that investors have priced both AI-driven growth and the impact of the Middle East supply shock, keeping markets in a risk-on stance despite heightened macro and geopolitical uncertainty.