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May 28, 2026 - 02:09
6 minutes
(Bloomberg) — Asian equities eased from record highs as investors searched for clarity on prospects for a deal to end the Middle East war after conflicting signals from the US and Iran. Crude oil gained.Stocks in Australia, South Korea and Japan edged down, pushing the MSCI Asia Pacific Index 0.6% lower. US stock futures erased earlier gains to slip 0.1% after Reuters reported new strikes by the US in Iran. Brent, the global crude oil benchmark, advanced 2% to $96.15 a barrel. The dollar gained.Treasuries fell slightly in Asian trading after bonds erased their gains during the US session following the White House’s dismissal of an Iranian media report that indicated peace negotiations were progressing toward ending a war that’s pushing up inflation. Bonds in Australia and New Zealand also edged lower.The technology sector remained in focus after some mixed earnings. Salesforce Inc. gave a lukewarm outlook and HP Inc. gave a profit outlook that failed to ease the chip-cost concern. Snowflake Inc. shares jumped almost 30% in late trading after the software maker gave a stronger-than-expected annual outlook. Marvell Technology Inc. delivered a quarterly forecast that exceeded analysts’ estimates.While resilient demand for AI-linked shares has repeatedly pushed global equities to records, elevated energy prices and the risk of renewed inflation have kept bond investors cautious. Attention now turns to Thursday’s release of the April personal consumption expenditures index — the Fed’s preferred inflation gauge — for clues on the path of interest rates.“The stock market has enough confidence that a resolution with Iran will eventually come to light, even if it’s not immediate,” said Alexander Guiliano at Resonate Wealth Partners. “While it may seem like stocks have moved too fast, we saw a garden variety correction only two months ago, which helped to reset sentiment.”President Donald Trump said he was “not satisfied” in negotiations with Iran, damping expectations for an imminent breakthrough. The US denied an Iranian media report about a draft interim deal that said traffic through the Strait of Hormuz could return to normal within a month of it coming into effect.Trump asserted that no one nation would control the waterway, highlighting a key sticking point in resolving the conflict as it enters its fourth month. He didn’t indicate what steps the US would take to ensure free passage of vessels. The president also downplayed the possibility of Iranian sanctions relief.US Secretary of State Marco Rubio said that “we’ll see over the next few hours and days whether progress could be made” on Iran. US Special Envoy Steve Witkoff, Jared Kushner and Vice President JD Vance “have been very involved,” he noted.US stocks ended Wednesday’s session roughly where they started, as investors took profits in tech names but remained optimistic that an end to the war in the Middle East was near.Despite the day’s see-saw trading, Wall Street strategists remain largely bullish on stocks, with the S&P 500 hovering near all-time highs.An “exceptionally strong first-quarter reporting season” prompted Goldman Sachs Group Inc. strategists led by Ben Snider to raise the year-end target for the S&P 500 to 8,000 points from a previous forecast of 7,600. Goldman joins Morgan Stanley and Deutsche Bank AG in seeing the benchmark end the year at 8,000 points.The failure to strike a deal to end the conflict is threatening to prolong the disruption to oil supplies, which has caused a steep jump in bond yields since late February by rekindling inflation. Central banks including the Federal Reserve are expected to raise interest rates in response.Investors and traders are “looking for something concrete on US and Iran that signals the conflict is coming to an end,” pointing to “a rally in Treasuries along with the decline in oil prices,” said Jack McIntyre, portfolio manager at Brandywine Global Investment Management.Corporate Highlights:Salesforce Inc. gave a revenue outlook for the current period that just fell short of analysts’ estimates, unnerving investors already concerned about the possibility that artificial intelligence will disrupt the software business. PDD Holding Inc.’s shares suffered their worst drop in a year after the company’s first-quarter revenue missed expectations in part due to fierce domestic competition and weak consumer sentiment in China. Perella Weinberg Partners is cutting almost 10% of its workforce, including a dozen partners, as the investment bank channels resources into higher-performing areas of its business, according to a person familiar with the matter. Some of the main moves in markets:StocksS&P 500 futures were little changed as of 9:05 a.m. Tokyo time Hang Seng futures were little changed Japan’s Topix fell 0.6% Australia’s S&P/ASX 200 fell 0.7% Euro Stoxx 50 futures rose 0.2% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1620 The Japanese yen was little changed at 159.57 per dollar The offshore yuan was little changed at 6.7789 per dollar The Australian dollar fell 0.1% to $0.7132 CryptocurrenciesBitcoin fell 0.9% to $74,437.48 Ether fell 1.8% to $2,023.04 BondsThe yield on 10-year Treasuries advanced two basis points to 4.50% Japan’s 10-year yield declined four basis points to 2.680% Australia’s 10-year yield advanced five basis points to 4.91% CommoditiesWest Texas Intermediate crude rose 1.8% to $90.29 a barrel Spot gold fell 0.1% to $4,449.26 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Rob Verdonck.©2026 Bloomberg L.P.
