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May 29, 2026 - 00:02
5 minutes
(Bloomberg) — Asian equities were poised to advance after gains in US stocks and Treasuries, as reports suggested Washington and Tehran were nearing an agreement to extend a ceasefire.Equity index futures for Australia, Japan and Hong Kong were all higher early Friday. Contracts for US stocks edged higher after the S&P 500 rose 0.6% to a new high, its sixth daily advance, while the Nasdaq 100 climbed 0.8% to also hit a record.Reports that the US and Iran had reached a tentative agreement to extend a ceasefire by 60 days and resume talks on Tehran’s nuclear program boosted demand for haven assets while weighing on oil. Brent crude settled below $94 a barrel, while Treasury yields fell across the curve and the dollar weakened against all major developed-market currencies.Optimism over a ceasefire extension outweighed concerns about clashes in the Persian Gulf, as investors bet a truce may ease disruptions to energy flows. The closure of the Strait of Hormuz since the war began has curbed oil shipments and stoked inflation fears, with markets now eagerly watching for any signs the vital corridor may reopen.“Markets continue to get whipsawed by swings in Iran war sentiment,” said Elias Haddad at Brown Brothers Harriman & Co. “Regardless, risk-on sentiment should remain supported because both sides are still talking to work out a deal that would ultimately reopen the Strait of Hormuz.”Equities started the day in the red but jumped to gains, with US President Donald Trump still needing to approve the terms, according to the reports.When pressed if an interim deal has been clinched, Treasury Secretary Scott Bessent would only say “the teams have been going back and forth.” He insisted President Donald Trump’s three “red lines” — reopening Hormuz, Iran turning over highly enriched uranium and ending its nuclear program — remain necessary for any pact.“Even if it is only a 60-day agreement to allow a resumption of traffic in the Strait, there should be a relief rally, as serious supply dislocations are approaching rapidly,” said veteran strategist Louis Navellier.Markets nonetheless embraced signs of progress in US-Iran talks, while investors continued piling into AI-linked stocks. Dell Technologies Inc. jumped more than 25% in extended trading after forecasting annual sales far above estimates, helping put the S&P 500 on track for a ninth straight week of gains — a streak matched only four times since 1985.In Asia, BYD Co., the world’s largest electric vehicle maker, unveiled a series of technology advances, including what it calls China’s first automotive-grade 4-nanometer chip for self-driving cars.At the same time, higher energy costs have fueled price pressures, raising concerns the Federal Reserve would be forced to boost rates. US consumer spending edged up in April, with annual inflation accelerating to the highest since 2023. Meantime, the economy expanded in the first quarter at a 1.6% annualized pace, slower than previously estimated.“The economy is still expanding, but hotter inflation limits the Fed’s flexibility and pushes rate cuts further out,” said Gina Bolvin at Bolvin Wealth Management Group. “This is a more difficult environment for investors because the growth story is cooling just as inflation is heating back up.”Corporate Highlights:Anthropic PBC raised $65 billion in a funding round that valued the artificial intelligence company at $965 billion including the new investment, eclipsing rival OpenAI’s value for the first time. Snowflake Inc. soared on a stronger-than-expected outlook and a $6 billion multiyear agreement to use Amazon.com Inc.’s cloud services and chips. Retailers Kohl’s Corp., Best Buy Co. and Dollar Tree Inc. rallied on optimism that shoppers are still spending when they see what they want at the right price. Some of the main moves in markets:StocksS&P 500 futures rose 0.1% as of 7 a.m. Tokyo time Hang Seng futures rose 0.6% S&P/ASX 200 futures rose 0.6% CurrenciesThe Bloomberg Dollar Spot Index fell 0.2% The euro was little changed at $1.1652 The Japanese yen was little changed at 159.26 per dollar The offshore yuan was little changed at 6.7726 per dollar The Australian dollar was little changed at $0.7164 CryptocurrenciesBitcoin rose 0.4% to $73,767.26 Ether rose 0.4% to $2,018.69 CommoditiesWest Texas Intermediate crude fell 0.3% to $88.64 a barrel Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.©2026 Bloomberg L.P.
