Asian stocks surge on Iran hopes, Samsung union talks ~ EconomyLens.com

Tokyo (AFP) – Shares surged in Seoul, Tokyo, and other Asian markets on Thursday, fuelled by hopes of a Middle East peace accord and by negotiations averting a planned strike at Samsung Electronics. Rallies in tech equities also drove gains, as Elon Musk’s SpaceX filed for what could be the largest initial public offering in history.

South Korea’s benchmark Kospi index closed 8.4 percent higher and Japan’s Nikkei index ended the day 3.1 percent up, after Iran said it was examining a new US proposal to end the war. President Donald Trump described on Wednesday the talks as being on the “borderline” between a deal and renewed attacks. Cautious hopes rippled quickly through financial markets, although investors remained wary after weeks of false starts. Oil prices had fallen five percent on Wednesday, but on Thursday were trading up around 0.7 percent.

“Today’s rally is being driven by a genuine confluence of positive catalysts rather than any single headline,” Dilin Wu, research strategist at Pepperstone, told AFP. Blowout quarterly results from US chip titan Nvidia “has validated the AI infrastructure buildout thesis,” sending Asian chip-related shares higher, Wu said. However, “the Iran situation remains highly fluid,” she added. “Trump’s window for a deal expires in days, and if talks collapse, you get the reverse of today very quickly.”

– Strike on hold –

Samsung Electronics closed 8.5 percent higher, after its labor union said late Wednesday that an 18-day strike had been put on hold. The dispute takes place against the backdrop of a global AI boom that has turbocharged Samsung’s business while boosting national growth and the stock market. Around 50,500 workers had been set to walk off production lines as anger flared over how the company distributes its massive profits. Under the tentative deal, to be voted on by union members, special bonuses will partly be paid in company stock over 10 years.

Around the region on Thursday, Taipei jumped 3.4 percent, Sydney gained 1.5 percent, with Bangkok and Wellington also up. However, Shanghai shed 2.0 percent, Jakarta tumbled 3.5 percent, and Hong Kong closed down 1.0 percent. Adding to tech investors’ excitement over the IPO for US rocket and satellite giant SpaceX was a Wall Street Journal report that ChatGPT maker OpenAI could be next. Citing people familiar with the matter, the newspaper said OpenAI was preparing to file for a stock market listing in the coming days, possibly as early as Friday. OpenAI did not immediately reply to a request for comment. But shares in Japan’s SoftBank Group — a major investor in the top US artificial intelligence startup — skyrocketed 20 percent.