Hopes for reopening the Strait of Hormuz push world shares higher, as Brent crude holds above US$100

A general view shows the New York Stock Exchange in New York. (AP Photo/Yuki Iwamura)

World shares jumped on Thursday, with Tokyo’s Nikkei 225 gaining almost 6 per cent to a new record as investors waited to see if the U.S. and Iran will strike a deal allowing tankers to deliver crude from the Persian Gulf again.

Japan’s benchmark Nikkei 225 index jumped more than 3,300 points to 63,086.00 as markets in Tokyo reopened following “Golden Week” holidays.

In early European trading, Germany’s DAX edged 0.2 per cent higher to 24,988.08 and the CAC 40 in Paris was up 0.3 per cent at 8,325.55. Britain’s FTSE 100 slipped 0.3 per cent to 10,411.19.

The future for the S&P 500 was up 0.1 per cent while that for the Dow Jones Industrial Average climbed 0.3 per cent.

Japan’s Nikkei 225 has gained nearly 20 per cent in the past three months and more than 70 per cent in the past year, pushed higher by strong buying of tech shares that have benefited from the boom in artificial intelligence.

Computer chip equipment maker Tokyo Electron gained 9 per cent and testing equipment maker Advantest Corp. added 6.8 per cent. Shin-Etsu Chemican gained 8.5 per cent.

“I think it’s a kind of bubble because buying activity concentrated on leading AI, artificial intelligence stock and semiconductor-related stocks. It’s a situation where only semiconductor stocks are being bought,” said Takashi Hiroki, chief strategist at MONEX.

Elsewhere in Asia, the Hang Seng in Hong Kong gained 1.7 per cent to 26,668.37.

The S&P/ASX 200 in Australia was up 0.8 per cent at 8,862.40.

In South Korea, the Kospi reversed early losses, gaining 1.4 per cent to 7,490.05, the second straight day it has closed at a record high. The benchmark jumped nearly 7 per cent on Wednesday to barrel past 7,000 for the first time.

Taiwan’s Taiex surged 1.9 per cent, lifted by a 3.1 per cent gain for big computer chipmaker TSMC.

On Wednesday, markets rallied worldwide after President Donald Trump said the Strait of Hormuz could be “OPEN TO ALL” if Iran accepts a reported agreement that the U.S. president did not detail.

Oil prices fell nearly 8 per cent and the S&P 500 climbed 1.5 per cent for its best day in nearly a month, setting a fresh record. The Dow industrials jumped 1.2 per cent, and the Nasdaq composite rose 2 per cent.

However, optimism was tempered by continuing tensions. The U.S. military fired on an Iranian oil tanker Wednesday as President Donald Trump sought to pressure Tehran into reaching a deal to end the war. The military said in a social media post that a fighter jet shot out the rudder of the tanker in the Gulf of Oman as the vessel tried to breach an American blockade of Iran’s ports.

Early Thursday in Asian trading, Brent crude oil yoyoed on Thursday, shedding early gains to fall 30 cents to US$100.97 a barrel. Benchmark U.S. crude oil slipped 37 cents to $94.71 a barrel.

Oil prices sank Wednesday and stock markets rallied worldwide on hopes that the United States and Iran were nearing a deal to allow ships to deliver crude through the Strait of Hormuz.

The price for a barrel of Brent crude oil, the international standard, fell 7.8 per cent to $101.27, down from more than $115 early this week. But after dipping below $97 a barrel, it pushed back above $100 after Trump threatened to start bombing “at a much higher level and intensity” if Iran does not accept his proposed agreement.

The effective closure of the strait due to the war threatens the global economy because the conflict has blocked oil tankers from using it to exit the Persian Gulf. A reopening could allow oil to flow freely again and remove pressure on inflation that’s driving prices up for all kinds of products worldwide.

U.S. stocks have remained resilient despite the war thanks partly to strong profit reports by big U.S. companies for the start of 2026.

Chipmaker AMD helped lead the market Wednesday with a surge of 18.6 per cent after it joined the list of big-name companies topping expectations for both profit and revenue.

In other dealings early Thursday, the U.S. dollar fell to 156.39 Japanese yen from 156.40 yen. The euro rose to $1.1752 from $1.1747.

Elaine Kurtenbach, The Associated Press