TOKYO - South Korea's Kospi soared nearly 7 per cent to a fresh record on Wednesday (May 6) as Samsung Electronics' stock jumped nearly 13 per cent in a rally driven by expectations of strong growth in artificial intelligence and hopes for progress in ending the US-Iran war.
Shares in SK Hynix, another major Korean computer chipmaker, shot up 10 per cent early Wednesday. Both Samsung and SK Hynix are major manufacturers of the computer chips vital for AI applications.
News that Iranian officials were travelling to China ahead of a summit between President Donald Trump and Chinese leader Xi Jinping lifted market sentiment. That also helped ease volatility in oil prices.
South Korea's market was closed Tuesday for a holiday and on reopening gained 6.7 per cent early Wednesday to 7,398.34.
Shares mostly rose in other Asian markets, though Tokyo trading was closed for a holiday.
Australia's S&P/ASX 200 gained nearly 1.0 per cent to 8,766.80 in morning trading.
Hong Kong's Hang Seng gained 0.7 per cent to 26,081.52, while the Shanghai Composite rose 1.0 per cent to 4,152.68.
In energy trading, benchmark US crude slipped US$1.37 (S$1.74) to US$100.90 a barrel. Brent crude, the international standard, lost US$1.50 to US$108.37 a barrel, echoing declines Tuesday that erased the big jumps earlier in the week. The prices still remain well above their roughly US$70 price before the war with Iran.
US military leaders have said a ceasefire with Iran is in effect, although uncertainties clearly remain. The US military is trying to force open a path in the Strait of Hormuz, which would allow oil tankers to resume shipments from the Persian Gulf.
The S&P 500 climbed 0.8 per cent to top its prior all-time high set at the end of last week, closing at 7,259.22. The Dow Jones Industrial Average added 0.7 per cent to 49,298.25, and the tech-heavy Nasdaq composite set its own record, rallying 1 per cent to 25,326.13.
Reports on the US economy came in mixed. One said growth for US services businesses unexpectedly slowed last month, with some companies saying the war is hurting spending. A separate report said US employers were advertising slightly more job openings at the end of March than economists expected, an encouraging signal for the job market.
In currency trading, the US dollar inched down to 157.88 Japanese yen (S$1.28) from 157.89 yen. The euro cost US$1.1720, up from US$1.1693.
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