Tech firms led a rally across most Asian markets Monday following another healthy day on Wall Street fuelled by more strong earnings, while investors were also cheered by news that Iran had submitted fresh proposals to end its war with the United States.
While the Middle East crisis continued to rumble along, with the Strait of Hormuz still effectively choked off, dealers turned their focus on the corporate world as they jumped back into the AI trade that has propelled several markets to record highs.
Forecast-beating reports from Apple, Google, Microsoft and Samsung have reawakened interest in the artificial intelligence sector after the market tumult caused by the US-Israel strikes on Iran at the end of February.
Companies in the S&P 500 are on track to report earnings growth of 27.1 percent, the highest rate in more than four years, according to Factset.
Investors have been playing a waiting game since a ceasefire was agreed at the start of April, with just one round of talks taking place that came to nothing.
In the meantime, the United States maintains a blockade of Iranian ports and Tehran is keeping the strait — through which a fifth of global oil and gas usually passes — closed.
Optimism was given a boost Friday after an Iranian report that Tehran had delivered the text of a new proposal to mediator Pakistan the night before.
The offer was said by the Tasnim News Agency as calling for a complete end to the conflict within 30 days along with guarantees against renewed strikes.
It also reiterated previous demands that include the withdrawal of US forces from near Iran, the blockade to be lifted and sanctions removed.
Iran’s foreign ministry said Tehran had submitted a 14-point plan “focused on ending the war” and that Washington had already responded to it in a message to Pakistani mediators, which Iran was reviewing.
Oil prices fluctuated Monday after dropping on Friday.
Donald Trump said Sunday that “very positive discussions” were underway and that US forces will soon start escorting ships out of the Strait of Hormuz in a a “humanitarian gesture” dubbed “Project Freedom”.
In a post on Truth Social, the US president said many of the marooned ships “were running low on food”, but offered few details on how the mission would work.
US Central Command said on X that its forces would begin supporting Project Freedom with guided-missile destroyers, over 100 land and sea-based aircraft, multi-domain unmanned platforms and 15,000 service members.
However, a senior Iranian official warned Monday that Tehran would consider any US attempt to interfere in the Strait of Hormuz a breach of the ongoing ceasefire.
