MSCI’s broadest ​index of Asia-Pacific shares outside Japan climbed 2.3% to a new record

Stocks surged, oil prices dropped in the Asian morning on Wednesday after ​U.S. President Donald Trump touted “great progress” towards a “final agreement” with Tehran, while momentum in AI-driven trades accelerated.

The U.S. president said he ‌would briefly pause an operation escorting ships through the Strait of Hormuz, which carries about a fifth of global oil and has been blockaded by Iran since late February, triggering a global energy crisis.

The news sent Brent crude sliding 1.2% to $108.51 per barrel, while S&P 500 e-mini futures were up 0.3%.

MSCI’s broadest ​index of Asia-Pacific shares outside Japan climbed 2.3% to a new record, led by a 5.1% surge in ​Kospi, clearing the 7,000 mark for the first time.

Markets embraced a sense of calm and stability overnight, ⁠with the risk of escalation in the Middle East conflict viewed as having diminished after U.S. Defence Secretary Pete Hegseth ensured ​the ceasefire was still in place, despite the U.S. and Iran trading blows yesterday, analysts from Westpac wrote in a research note.

This put ​some wind in the sails for risk sentiment, supporting a rebound in equities across the U.S. and Europe at the same time as crude oil prices partially unwound yesterday’s climb, they said.

Investors bought ​and continue to add to positioning in the 2026 winners, said Chris Weston, head of research at Pepperstone Group Ltd in Melbourne. There ​has been some buying in S&P 500 materials stocks, but it’s tech that continues to attract the bulk of flows, notably in Apple and the memory plays.

As ⁠the Seoul market reopened after a holiday, Samsung Electronics climbed 12%, topping a $1 trillion market value, overtaking Berkshire Hathaway and closing in on Walmart.

Due to the capex spend we are seeing from hyperscalers in the U.S., the earnings growth trajectory for sectors such as semiconductors, tech hardware, industrials and materials in Asia exceeds anything I have seen in a long-time, said Rushil Khanna, head of equity investments for ​Asia at Ostrum, an affiliate ​of Natixis Investment Managers.

This capex ⁠is leading to material value creation in Asia as the provider of the picks and shovels to the AI ecosystem, he said.