SINGAPORE, May 24, 2026, 14:27 (SGT)
Asia’s stock markets open Monday with traders watching chips, as oil, yields, and regulators in China weigh on sentiment. Headlines out of Washington added some uncertainty. U.S. President Trump said a peace deal with Iran is “largely negotiated.” But Iranian media denied his claim that the Strait of Hormuz has reopened. Reuters
Nikkei 225 jumped 2.68% Friday, while the Hang Seng rose 0.86% and Shanghai added 0.87%. Australia’s All Ordinaries was up 0.41%, data from LSEG showed. Bulls are still pushing, but the last cash session didn’t leave much room for comfort.
Stocks are still rising despite harsh macro headwinds. Global equities pushed up Friday, with the Dow closing at a record and the S&P 500 marking eight straight weekly gains. Brent crude closed over $103 a barrel. The 10-year Treasury yield was at 4.558%. “Markets were starting to show a larger negative correlation between bond yields and stock prices,” said Anthony Saglimbene, chief market strategist at Ameriprise. Reuters
AI is still out front. Nvidia CEO Jensen Huang told reporters in Taipei his $200 billion CPU market projection includes China, calling it “very important”. Huang also said Nvidia is scaling up production for its Vera Rubin platform, which should lead to “a very busy second half” for Taiwan’s supply chain. TSMC stays the main name to watch. Reuters
Lenovo pushed the move higher. The PC giant reported a 27% jump in quarterly revenue and its stock rose 15%. CEO Yang Yuanqing told Reuters there is a “heavy shortage” in memory chip supply. In New York, Dell and HP traded up after Lenovo’s report raised hopes for hardware demand. Reuters Reuters
China takes a tougher line on cross-border trading. Beijing on Friday said it will crack down on illegal cross-border securities activity and named online brokerages Futu, Tiger, and Longbridge. Clients of these firms will have to stick to selling and withdrawals for two years as the platforms wind down the prohibited business. “The government wants to ensure that any outbound capital flows are under its scrutiny,” said Gary Ng, senior economist for Asia Pacific at Natixis. Reuters
Japan’s core inflation rate, excluding fresh food, dropped to 1.4% in April, hitting lows not seen since March 2022. Still, with the energy shock from the Middle East, analysts expect prices to pick up again. Abhijit Surya, senior APAC economist at Capital Economics, said in a note the Bank of Japan might be forced to tighten policy “sooner rather than later.” Reuters
BOJ Governor Kazuo Ueda said after meeting with Prime Minister Sanae Takaichi on Friday that the two will stay in close contact, but “There wasn’t any specific discussion” about a June rate hike. Interest rate traders now price in about an 80% likelihood the BOJ will raise its policy rate to 1% from 0.75% at the meeting set for June 15-16. Reuters
This week is full with key data. Investors are waiting for Thursday’s U.S. personal consumption expenditures price index, the Federal Reserve’s favored inflation gauge. U.S. GDP and confidence numbers are also due. The Bank of Korea is expected to keep its policy rate at 2.5% Thursday, even with some speculation about possible hikes. Tokyo inflation data will arrive as well and add to the Bank of Japan debate.
India’s markets firmed up a little last week, but the overall trend stayed soft. Nifty 50 and Sensex each added about 0.3% as IT and bank stocks did some heavy lifting. Both are still well below pre-Iran war marks. “Unlikely to sustain” is how Kranthi Bathini at Wealthmills Securities put it, barring some clear Iran-U.S. talks and oil prices staying under $100, he said. Reuters
The downside sticks out. Axios said the U.S. is floating a 60-day Iran ceasefire, which would open Hormuz and let Iran sell oil. But the deal still needs agreement on nuclear limits, sanctions waivers and shipping checks. If talks break down, oil prices, inflation trades and bond yields could move front and center for markets.
Asian bulls are eyeing AI earnings, softer yields, and hoping diplomatic moves help keep oil in check. Fund managers will shape the Monday open. They may follow Friday’s rally, or treat it as another brief uptick in a choppy, uncertain market.
