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May 4, 2026 – 02:23

(Bloomberg) — Asian stocks rose at the open and crude oil fluctuated as traders grappled with mixed signals from the Middle East, while strong corporate earnings kept the technology sector buoyant.

MSCI’s Asia Pacific Index rose 0.4% with South Korea — a poster child for artificial intelligence — jumping 2.4%. US equity-index futures fluctuated after both the S&P 500 and the Nasdaq 100 indexes closed at a record high on Friday, helped by strong earnings from megacap technology companies.

Markets opened trading Monday on an optimistic note after President Donald Trump said the US will begin guiding ships not involved in the Iran conflict through the Strait of Hormuz from Monday. However, a senior Iranian official warned that Tehran would consider any US interference in the Strait of Hormuz a ceasefire breach.

Brent crude, which fell as much as 2.4% to $105.55 a barrel, erased those losses to climb back over $108. The dollar edged lower against most of its major peers. The yen was a touch stronger at 156.94 per dollar after Japan reportedly intervened in the market on Thursday to support the currency.

Treasury futures rose. There will be no cash trading in Treasuries until New York due to holidays in Tokyo and London.

Trump described discussions with Tehran as “very positive” after it received Washington’s response to its latest proposal to end the war. The steps may pave the way for smoother energy flows and a potential deal, even as uncertainty over the conflict persists.

“The devil is always in the detail, but is a positive signal as it shows both parties are willing to find common ground,” said Rodrigo Catril, a strategist at National Australia Bank in Sydney. Whether the positive sentiment lasts “is hard to tell. We have been here before,” he said.

Iran’s proposal called for a complete end to the conflict within 30 days along with guarantees against renewed strikes, the semi-official Tasnim News Agency reported. The plan reiterated Tehran’s earlier demands, including that US forces withdraw from near Iran, a maritime blockade be lifted, sanctions removed and reparations paid, it said.

On Sunday, Iran said it received the US response to its plan via Pakistan, and is reviewing it.

What Bloomberg Strategists Say…

Conflicting reports are leaving traders unclear on the role of the US Navy which is reported to be acting in a coordination process for countries, insurance companies and shipping organizations. This appears to be some way from physically protecting ships.

— Mark Cranfield, MLIV. For full analysis, click here.

The latest headlines add to the month-long surge in equities as traders mostly set aside concerns about the economic fallout from the hostilities, with signs of corporate resilience driving US stocks to their best month since 2020. Efforts to turn a fragile ceasefire into lasting peace combined and signs of US economic strength sent the S&P 500 to its fifth consecutive week of gains.

The S&P 500 ended April at highs with about 81% of the benchmark’s companies having beat first-quarter earnings estimates, according to data compiled by Bloomberg. Emerging market equities notched a fresh record high toward the end of April while a gauge of Asian stocks have almost recouped their war-driven losses.

Risk-taking went beyond equities, with high-yield credit spreads near multi-year tights and retail traders piling into prediction markets and zero-day options. The rally has held through the war in Iran, oil above $100 a barrel and a Federal Reserve that has signaled rates will stay higher for longer amid elevated energy costs.

“The market is being very patient with this level of uncertainty because it is focused on the other side of the conflict, which may be too optimistic,” said Joe Gilbert, a portfolio manager at Integrity Asset Management. “The economic damage being done will be more materially felt in the next month.”

Corporate News:

GameStop Corp. will offer $125 in cash and stock per eBay Inc. share in a takeover proposal valued at about $56 billion, the Wall Street Journal reported, citing an interview with GameStop Chief Executive Ryan Cohen. National Australia Bank Ltd. missed first-half profit estimates as higher software costs and the deteriorating economy pushed up credit provisions, offsetting robust loan growth. China ordered companies in the country not to comply with US sanctions on five domestic refiners linked to the Iranian oil trade, deploying a blocking measure introduced in 2021 that was aimed at protecting its firms from foreign laws it deemed unjustified. Thyssenkrupp AG said it and Jindal Steel International agreed to pause talks about the Indian company acquiring a stake in its steel unit. Some of the main moves in markets:

Stocks

S&P 500 futures were little changed as of 9:20 a.m. Tokyo time Australia’s S&P/ASX 200 fell 0.3% Euro Stoxx 50 futures rose 1.3% Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1725 The Japanese yen was little changed at 156.94 per dollar The offshore yuan was little changed at 6.8298 per dollar The Australian dollar rose 0.1% to $0.7210 Cryptocurrencies

Bitcoin fell 0.6% to $78,407.34 Ether fell 0.7% to $2,313.39 Bonds

Australia’s 10-year yield declined four basis points to 4.98% Commodities

West Texas Intermediate crude rose 0.1% to $102.09 a barrel Spot gold fell 0.1% to $4,609.07 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Matthew Burgess and Bernadette Toh.

©2026 Bloomberg L.P.