Singapore, May 22, 2026, 16:06 (SGT)
- Asian shares gained, with investors betting on progress in U.S.-Iran talks.
- The Nikkei in Japan jumped close to 3%. Markets in Taiwan, Hong Kong, Shanghai, and India moved higher as well.
- Oil traded close to $105 a barrel and the yen stayed weak, keeping the rally at risk of snapping back.
Asia stocks climbed Friday, with Japan leading the way. Investors brushed off high oil prices and a firmer dollar, betting on progress in U.S.-Iran peace talks. MSCI’s Asia-Pacific index ex-Japan was up 0.8%. The Nikkei surged 2.8%, near its all-time peak.
Markets are caught between hopes for diplomacy to ease fears of a deeper energy shock and worries that it’s already too late, with inflation and rate bets moving up. The Strait of Hormuz, a critical route for oil and LNG, is still where everything’s tense.
Asia stocks were mostly higher by the afternoon. Hong Kong’s Hang Seng and the Shanghai Composite both rose 0.9%. South Korea’s Kospi and Australia’s S&P/ASX 200 each added 0.4%. Taiwan’s Taiex ended up 2.2%, while India’s Sensex climbed 0.6%. Brent crude was near $105 a barrel.
Equity buyers showed up after a choppy week for oil and unease in the bond market, as investors started to see something firmer to price in, even if “confidence levels are still not especially high,” said Chris Weston, head of research at Pepperstone. Caution around central banks still hung over the market, but that didn’t keep buying from picking up.
Japan stocks outperformed peers, even as new data showed core consumer price inflation slowed to 1.4% in April from a year ago, the smallest gain in four years. Core CPI strips out fresh food costs. Abhijit Surya, senior APAC economist at Capital Economics, expects inflation to pick up again soon, which should keep the Bank of Japan on course for policy tightening earlier than later.
Tech stocks added to the rally. Nvidia’s numbers from earlier this week steadied nerves on artificial-intelligence hardware, with Asian chip names still firm. Chip suppliers like Samsung Electronics, SK Hynix, and Micron are getting a lift from tight supply and rising demand as AI investment grows, Reuters Breakingviews said.
Lenovo gave Hong Kong stocks a boost. The PC maker’s shares rallied after it posted a 27% jump in fiscal fourth-quarter revenue to $21.6 billion, outpacing analyst estimates. Buyers moved to lock in orders ahead of price hikes tied to a memory-chip shortage.
Nifty 50 ticked up 0.6% and Sensex added 0.7% in morning trading, both getting a boost from HDFC Bank and ICICI Bank. Shares in both lenders climbed around 2%. “Macro noise is repeatedly interrupting resilient micro fundamentals,” said Anuj Jain, co-founder of Green Portfolio PMS. He said crude prices, inflation and geopolitics remain key for the markets. Reuters
Peace hopes could unravel fast. Washington and Tehran are still split on Iran’s uranium and the Strait of Hormuz, and Pakistan is in the middle trying to get a deal. “I’m not really that convinced” the sides are moving closer, said IG’s Tony Sycamore. Reuters
U.S. Secretary of State Marco Rubio said there were “some good signs” coming from talks, but he cautioned a potential Iranian tolling system in Hormuz could sink any diplomatic agreement. The dollar held near six-week highs, while the yen stayed around 159 per dollar. That’s near where traders watch for Japanese intervention. Reuters
That puts Asia’s rally on shaky ground. Another jump in crude could push up inflation, increase chances of tighter policy, and pressure the high-growth tech stocks behind most of the gains.
Buyers are backing the rebound for now, but headlines from the Gulf are moving the market as much as results out of Tokyo, Seoul, or Hong Kong.
