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World Shares Higher Thursday 05/07 04:50
World shares jumped on Thursday, with Tokyo's Nikkei 225 gaining almost 6%
to a new record as investors waited to see if the U.S. and Iran will strike a
deal allowing tankers to deliver crude from the Persian Gulf again.
(AP) -- World shares jumped on Thursday, with Tokyo's Nikkei 225 gaining
almost 6% to a new record as investors waited to see if the U.S. and Iran will
strike a deal allowing tankers to deliver crude from the Persian Gulf again.
Japan's benchmark Nikkei 225 index jumped more than 3,300 points to
63,086.00 as markets in Tokyo reopened following "Golden Week" holidays.
In early European trading, Germany's DAX edged 0.2% higher to 24,988.08 and
the CAC 40 in Paris was up 0.3% at 8,325.55. Britain's FTSE 100 slipped 0.3% to
10,411.19.
The future for the S&P 500 was up 0.1% while that for the Dow Jones
Industrial Average climbed 0.3%.
Japan's Nikkei 225 has gained nearly 20% in the past three months and more
than 70% in the past year, pushed higher by strong buying of tech shares that
have benefited from the boom in artificial intelligence.
Computer chip equipment maker Tokyo Electron gained 9% and testing equipment
maker Advantest Corp. added 6.8%. Shin-Etsu Chemican gained 8.5%.
"I think it's a kind of bubble because buying activity concentrated on
leading AI, artificial intelligence stock and semiconductor-related stocks.
It's a situation where only semiconductor stocks are being bought," said
Takashi Hiroki, chief strategist at MONEX.
Elsewhere in Asia, the Hang Seng in Hong Kong gained 1.7% to 26,668.37.
The S&P/ASX 200 in Australia was up 0.8% at 8,862.40.
In South Korea, the Kospi reversed early losses, gaining 1.4% to 7,490.05,
the second straight day it has closed at a record high. The benchmark jumped
nearly 7% on Wednesday to barrel past 7,000 for the first time.
Taiwan's Taiex surged 1.9%, lifted by a 3.1% gain for big computer chipmaker
TSMC.
On Wednesday, markets rallied worldwide after President Donald Trump said
the Strait of Hormuz could be "OPEN TO ALL" if Iran accepts a reported
agreement that the U.S. president did not detail.
Oil prices fell nearly 8% and the S&P 500 climbed 1.5% for its best day in
nearly a month, setting a fresh record. The Dow industrials jumped 1.2%, and
the Nasdaq composite rose 2%.
However, optimism was tempered by continuing tensions. The U.S. military
fired on an Iranian oil tanker Wednesday as President Donald Trump sought to
pressure Tehran into reaching a deal to end the war. The military said in a
social media post that a fighter jet shot out the rudder of the tanker in the
Gulf of Oman as the vessel tried to breach an American blockade of Iran's ports.
Early Thursday in Asian trading, Brent crude oil yoyoed on Thursday,
shedding early gains to fall 30 cents to $100.97 a barrel. Benchmark U.S. crude
oil slipped 37 cents to $94.71 a barrel.
Oil prices sank Wednesday and stock markets rallied worldwide on hopes that
the United States and Iran were nearing a deal to allow ships to deliver crude
through the Strait of Hormuz.
The price for a barrel of Brent crude oil, the international standard, fell
7.8% to $101.27, down from more than $115 early this week. But after dipping
below $97 a barrel, it pushed back above $100 after Trump threatened to start
bombing "at a much higher level and intensity" if Iran does not accept his
proposed agreement.
The effective closure of the strait due to the war threatens the global
economy because the conflict has blocked oil tankers from using it to exit the
Persian Gulf. A reopening could allow oil to flow freely again and remove
pressure on inflation that's driving prices up for all kinds of products
worldwide.
U.S. stocks have remained resilient despite the war thanks partly to strong
profit reports by big U.S. companies for the start of 2026.
Chipmaker AMD helped lead the market Wednesday with a surge of 18.6% after
it joined the list of big-name companies topping expectations for both profit
and revenue.
In other dealings early Thursday, the U.S. dollar fell to 156.39 Japanese
yen from 156.40 yen. The euro rose to $1.1752 from $1.1747.
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