Asian Shares Surge on Hopes for Iran Deal, US Corporate Earnings
Asian shares surged on Wednesday as hopes for a deal setting the stage for talks to end the war in Iran lifted investor sentiment. The US stock market rallied to records, driven by strong corporate earnings reports and easing oil prices.
The Nikkei 225 index in Japan gained 3.3% to 66,068.24, led by chipmaker Kioxia's 6.3% surge and Advantest's 6.9% increase. The Kospi in Seoul shot up 4.4% to 6,642.02, with memory chipmaker SK Hynix leading the way at a 6.7% gain.
US benchmark crude shed 1.1% to $74.96 per barrel as hopes rose for progress toward a full reopening of the Strait of Hormuz. This development has buoyed shares and reduced oil prices, which had swung between $72 and $102 in July due to uncertainty about when calm in the Middle East would allow oil tankers to exit the Persian Gulf.
US corporate earnings reports showed profits piling up for companies as easing oil prices assuaged worries about inflation. Palantir Technologies led the way with a 29.5% surge after its CEO Alex Karp said revenue leaped 93%. Caterpillar climbed 5.6% after reporting stronger profit and revenue than analysts expected.