Nikkei Blasts Past 70,000, KOSPI Shatters 9,000 as Oil Deal Sparks Global Rally
Asian stocks smashed historic records on Tuesday, with Japan’s Nikkei 225 briefly topping 70,000 points for the first time and South Korea’s KOSPI index eclipsing 9,000, fueled by a landmark US-Iran oil deal that crushed inflation fears and sent crude prices plunging [176623][173833].
The Nikkei 225 hit 70,000 during morning trading before settling 0.6% higher at 69,713.05, after the Bank of Japan raised its key interest rate by a quarter point to 1%—its highest in three decades [173833]. South Korea’s KOSPI jumped 2.1% to a record 8,721.64, while the Shanghai Composite edged up less than 0.1% to 4,100.53 [173833]. Taiwan’s Taiex rose 0.6%, and India’s Sensex gained 0.5% [173833].
The rally followed a blockbuster day on Wall Street, where the S&P 500 climbed 1.7%, the Dow hit a record, and the Nasdaq surged 3.1% [173833]. Markets exploded higher after the United States and Iran reached a tentative deal to reopen the Strait of Hormuz, a critical waterway for global oil shipments [173833]. Brent crude tumbled 4.8% on expectations of resumed oil flows, and benchmark US crude fell to $80.66 a barrel [173833]. The price drop pushed gasoline below $4 per gallon, providing immediate relief for consumers and businesses [175665].
“The drop in oil prices could provide relief for consumers and businesses alike,” analysts noted, though long-term effects remain uncertain [175665]. In Tokyo, lower oil costs eased inflation concerns and boosted energy-sensitive sectors like transportation and manufacturing, with the Nikkei gaining 0.8% in Monday’s session [174669]. The weaker yen against the dollar also supported export-oriented stocks [174149].
Technology shares led the charge across Asia. In South Korea and Taiwan, semiconductor stocks surged after Apple CEO Tim Cook warned that price increases for its products would be “unavoidable” due to rising microchip costs [175628]. Markets in both countries hit all-time highs as investors bet that higher chip prices will translate into greater profits for the region’s dominant chipmakers [175628].
On Wall Street, artificial-intelligence companies led the surge. Micron Technology jumped 10.8%, Advanced Micro Devices rose 7%, and Nvidia gained 3.5% [173833]. SpaceX, Elon Musk’s rocket company, rose 19.6% in its second day of trading [173833]. Treasury yields eased as lower oil prices reduced pressure on central banks to raise interest rates, with the 10-year yield slipping to 4.47% [173833].