Asian technology stocks surge as Wall Street records and oil prices fall on hopes of Strait of Hormuz deal
Asian equities climbed significantly on Wednesday, driven by a strong rally in U.S. technology stocks and easing oil prices. Major benchmarks in Tokyo, Seoul, and Taiwan all saw gains of over 3 percent, led by a surge in semiconductor and AI-related companies. This growth follows a banner day for Wall Street, where the S&P 500 and Dow Jones Industrial Average reached new record highs. Market confidence was bolstered by robust corporate earnings, particularly from Palantir Technologies, and the administration's push for a deal to reopen the Strait of Hormuz. U.S. Treasury Secretary Scott Bessent indicated that a deal with Iran could be reached within days, which has helped lower crude oil prices and ease concerns regarding global inflation. The administration announced that the U.S. is nearing an interim deal with Iran and Oman to reopen the waterway. President Trump warned that Iran would be hit hard if the strait is not reopened soon. These developments have shifted market sentiment back to the upside, providing relief to traders after a period of high volatility in the tech sector.