Asia-Pacific Markets Open Higher Amid U.S.-Iran Tensions
On May 7, 2026, Asia-Pacific markets began the day on a positive note as investors seemed to overlook new uncertainties surrounding the tenuous ceasefire between the United States and Iran. This shift came after President Trump commented that the ceasefire was “on massive life support.”
During a statement on Monday, Trump expressed concerns about the ceasefire’s durability, suggesting it relies heavily on a fragile response from Tehran to U.S. proposals aimed at resolving the conflict. He elaborated, saying, “You could say a cease-fire is a massive life-saving procedure,” comparing it to a patient with a “1% chance of survival.”
The Nikkei Stock Average in Japan climbed by 0.2%, while TOPIX saw a rise of 0.54%. South Korea’s Kospi index surged over 2%, especially following a record high the previous day. Additionally, the small-cap Kosdaq rose by 0.62%. Meanwhile, Australia’s S&P/ASX 200 index remained mostly unchanged.
In Hong Kong, the Hang Seng Index Futures were reported at 26,421, slightly above the previous closing of 26,406.84.
Despite escalating geopolitical tensions and persistent worries about inflation and high oil prices, global stock prices are on the rise. Jordan Rizzuto, chief investment officer at Gammalord Capital Partners, described the current situation as a “show me” market, where investors are reluctant to take risks unless they see substantial changes in the economic landscape.
After navigating through challenges like the pandemic and inflation spikes, investors appear more inclined to buy during market dips rather than retreat. Rizzuto noted that retail actions, including flows into leveraged exchange-traded funds and call options, are contributing to the bullish trend. This trend has led dealers to purchase underlying stocks as hedges, creating a significant growth in buffer funds and stock strategies that offer extra protection against losses.
In the U.S., S&P 500 futures saw a slight uptick, while Nasdaq 100 futures gained 0.1%. Additionally, Dow Jones Industrial Average futures increased by 24 points, which is less than 0.1%.
In the previous night’s trading, the S&P 500 found support from major tech companies even with rising oil prices following Trump’s dismissal of Iran’s latest peace proposal. The broader market index increased by 0.19%, closing at 7,412.84, while the Nasdaq Composite rose by 0.1% to end at 26,274.13. Both indexes achieved new intraday highs and closed at their highest levels. The Dow Jones Industrial Average advanced by 95.31 points, or 0.19%, finishing at 49,704.47.
