Reports of Iran submitting a new proposal to reopen the Strait of Hormuz through Pakistani mediators lifted Asia-Pacific markets broadly higher on Monday. Technology stocks led the gains, pushing key indices to fresh record highs, though oil prices subsequently recovered and U.S. and European equity futures pared early advances, signaling a shift toward more cautious sentiment.
According to sources familiar with the matter, Iran has communicated a three-phase negotiation proposal to the United States via intermediaries. The MSCI Asia Pacific Index rose 1.1%, while the emerging markets index climbed to a historic peak. Taiwan Semiconductor Manufacturing surged 6% to a new all-time high, propelling the Asian tech stock index to a record level. Japan’s Nikkei 225 advanced 1.4%, and South Korea’s KOSPI gained 1.83%, both setting new historic highs.
The optimistic mood did not extend evenly across markets. Brent crude futures rose as much as 2.1% to $107.97 per barrel, while U.S. and European stock index futures gave up their early-session gains. The Bloomberg Dollar Spot Index declined 0.1%. Meanwhile, nickel prices climbed to a near two-year high, and Bitcoin approached the $80,000 mark.
Markets face multiple key tests this week: the Federal Reserve, European Central Bank, and Bank of Japan are set to announce policy decisions, while tech giants including Alphabet, Microsoft, Amazon.com, Meta Platforms, Inc., and Apple—with a combined market value of approximately $16 trillion—are scheduled to report quarterly earnings. Keith Lerner, Chief Investment Officer and Chief Market Strategist at Truist Advisory Services, remarked, "This will be a critical week," noting that earnings results must "validate the recent market rally."
The Nikkei 225 closed up 1.4% at 60,537.36. The Topix index ended 0.5% higher at 3,735.28. South Korea’s KOSPI finished 2.2% higher at 6,615.03, with SK Hynix rising 7%. Taiwan Semiconductor Manufacturing’s 6% surge to a record high helped drive Asian tech shares to new peaks.
S&P 500 futures were little changed. The U.S. dollar index fell 0.1%. The yield on the 10-year U.S. Treasury note increased 2 basis points to 4.32%. Brent crude futures climbed as much as 2.1% to $107.97 per barrel. Spot gold edged up 0.13% to $4,714.39 per ounce.
Nickel futures on the London Metal Exchange rose to a session high of $19,365 per ton, the highest level since June 2024, before moderating to around $19,260, still up as much as 1.8% for the day. Copper prices inched up 0.1% to $13,325 per ton, while tin declined 0.4% to $50,150.
Bitcoin climbed as much as 1.6% to $79,488, its highest since January 31, after briefly surpassing $80,000. Ethereum also advanced, rising 1.7%.
Iran’s new proposal prioritizes reopening the Strait of Hormuz and defers nuclear negotiations until after U.S. sanctions on the strategic waterway are lifted. The proposal, conveyed to the White House via Pakistani intermediaries, suggests extending the current ceasefire as a step toward a permanent truce. Pakistan has delivered the proposal, though it remains unclear whether the U.S. will engage. Former President Trump is expected to convene his national security team Monday to discuss Iran. The White House did not immediately comment.
The latest diplomatic effort follows a setback over the weekend when Trump called off a planned trip by envoys to Islamabad, citing internal divisions within Iranian leadership. Iran has stated it will not negotiate under threat. Tensions remain high in the Strait of Hormuz, where Iran’s Revolutionary Guard reportedly boarded two commercial vessels.
Yugo Tsuboi, Chief Strategist at Daiwa Securities, said, "The news aligns with market expectations for a U.S.-Iran agreement and comes at an advantageous time amid the peak of earnings season." Sean Keane, Asia-Pacific Chief Strategist at JB Drax Honore, noted that while markets have been encouraged by signs of negotiation progress, "the positive reaction to each new announcement is fading as traders grow fatigued. Still, equities have been looking for a reason to rise and often don’t need much."
Enthusiasm for artificial intelligence investments, combined with optimism over the Iran proposal, fueled strong gains in Asian tech shares. Taiwan Semiconductor Manufacturing’s 6% surge to a record high served as a key driver. Bloomberg strategist Mark Cranfield observed, "As long as energy prices stay within a predictable range, global investors are willing to bet on excess returns from the AI theme."
On Friday, the S&P 500 rose 0.8% to 7,165.08 and the Nasdaq Composite climbed 1.63% to 24,836.60, both reaching intraday records. The Dow Jones Industrial Average fell 79.61 points, or 0.16%, to 49,230.71. The S&P 500 has gained nearly 10% since late March and is on track for its best monthly performance since late 2020.
This week brings a dual test for markets from central bank decisions and corporate earnings. Investors widely expect the Fed and ECB to hold rates steady but will watch for any commentary on inflation risks stemming from potential oil supply disruptions due to Middle East tensions. The Bank of Japan begins its policy meeting Tuesday. Rachana Mehta of Maybank Asset Management noted that investors in five- to six-year bonds can still achieve positive returns this year based on yield spreads alone.
The U.S. Justice Department’s closure of an inquiry into Fed Chair Jerome Powell has cleared the path for Kevin Warsh’s nomination, boosting expectations for rate cuts later this year. In response, the 10-year Treasury yield rose 2 basis points to 4.32%.
On the earnings front, Alphabet, Microsoft, Amazon.com, and Meta Platforms, Inc. report on Wednesday, followed by Apple on Thursday. These five firms, with a combined market value of around $16 trillion, account for a quarter of the S&P 500’s total capitalization. Francis Tan, Chief Asia Strategist at Indosuez Wealth Singapore, said investors remain encouraged by strong corporate profits and AI momentum, while "keeping a close but peripheral watch on U.S.-Iran developments."
Nickel prices climbed to their highest in nearly two years, supported by Indonesia’s cuts to mining quotas and global sulfur shortages that have disrupted production of mixed hydroxide precipitate in Indonesia and leaching operations at African copper mines. Jinrui Futures noted in a report that "sentiment in the nickel market remains upbeat, with traders awaiting further catalysts pointing to significant MHP output reductions." Other base metals showed mixed performance, with copper up slightly and tin down.
Bitcoin neared $80,000, rising 1.6% to a high of $79,488, its strongest level since late January. It has gained 16% in April, on track for its first double-digit monthly rise since May 2025. Michael Saylor’s Strategy Inc. purchased $3.9 billion in Bitcoin this month, the largest monthly acquisition in nearly a year. U.S.-listed spot Bitcoin ETFs saw net inflows of about $2.5 billion this month, double the March figure, after four straight months of institutional outflows.
Rachael Lucas, an analyst at BTC Markets, noted that $80,000 represents a breakeven point for many recent buyers and could trigger profit-taking. She also warned, "The probability of a U.S.-Iran agreement has fallen significantly, and this macro pressure could lead to a repricing of risk assets broadly."
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