Asia report: Markets mostly rise despite lack of US-Iran peace progress

27th Apr 2026 11:05

(Sharecast News) - Asia-Pacific markets mostly rose on Monday as investors shrugged off diplomatic setbacks between the United States and Iran, encouraged by Tehran's proposal to reopen the Strait of Hormuz and buoyed by robust earnings data from China's industrial sector, even as Middle East tensions kept oil prices elevated.

The rally came despite US president Donald Trump scrapping plans to send envoys Steve Witkoff and Jared Kushner to Islamabad for negotiations with Iran, citing wasted travel time and infighting within Tehran's leadership.

Yet market sentiment held steady after Iran offered a new proposal for ending the conflict, suggesting that nuclear talks be deferred, according to reporting Monday that cited a US official and two sources with knowledge of the matter.

Patrick Munnelly, market strategy partner at TickMill, said the improvement in tone reflected easing concerns over the immediate risk to regional diplomacy.

"Risk sentiment strengthened after Iran proposed a plan to reopen the Strait of Hormuz, easing concerns that regional diplomacy was breaking down and reducing the immediate risk premium in energy markets," Munnelly commented.

He added that broader sentiment had also been underpinned by strong corporate earnings, with the MSCI Asia Pacific Index advancing 1.7% and emerging-market equities hitting fresh records.

"Asian semiconductor shares led gains, with Taiwan Semiconductor Manufacturing rising 6% to an all-time high," Munnelly noted.

Tensions in the Strait of Hormuz remained high after Iran's Revolutionary Guard reportedly boarded two cargo ships near the strategic sea lane, underlining the fragility of the ceasefire backdrop even as markets focused on the prospect of renewed diplomatic progress.

Japan hits fresh record on semiconductor strength

Japan's Nikkei 225 surged 1.38% to 60,537.36, marking another record close as technology stocks led gains across the region.

The broader Topix edged up 0.5% to 3,735.28.

Fanuc Corporation jumped 15.98%, while Keyence Corporation climbed 15.83% and Panasonic Holdings advanced 7.78%.

China's markets were mixed, with the Shanghai Composite rising 0.16% to 4,086.34 and the Shenzhen Component gaining 0.37% to 14,995.75, as strong corporate earnings data offset lingering concerns over domestic demand.

Industrial profits at Chinese firms grew at their fastest pace in six months in March, jumping 15.8% year-on-year, according to National Bureau of Statistics data released Monday.

The figure quickened from a 15.2% surge in the first two months of the year, signalling a marked acceleration in corporate earnings.

Yu Weining, chief statistician at the NBS, highlighted the outsize strength in high-tech manufacturing sectors, which saw profits soar 21% and 47.4% respectively in the first quarter.

"The artificial intelligence and semiconductor boom drove outsized profit growth across several subsectors in the first three months of the year," the NBS statement said.

Profits for optical fibre makers surged 336.8% year-on-year, while optoelectronics manufacturers posted gains of 43% and display device makers advanced 36.3%.

Demand for intelligent products also lifted earnings across emerging industries, with drone manufacturers posting a 53.8% profit gain.

For the first three months of the year, enterprise profits rose 15.5%, marking the fastest start to a year since 2017 excluding pandemic-driven spikes in 2021.

Individual stocks including Suzhou HYC Technology jumped 20%, Guangzhou Fangbang Electronics gained 16.28% and Caihong Display Devices added 10.04% as investors rotated into the strong-performing sectors.

However, Munnelly cautioned that the recovery appeared selective and uneven across the economy.

"China's March industrial profits increased by 15.8% year over year, indicating improved corporate earnings, although this growth varied significantly across sectors," he said.

"This mixed performance provides little help for investments related to China, as overall market confidence is affected by ongoing problems like low domestic demand and issues in the property sector."

Hong Kong's Hang Seng Index declined 0.2% to 25,925.65, dragged lower by declines in heavyweight stocks as sentiment remained mixed.

Sinopharm Group fell 3.8%, China Hongqiao Group dropped 3.74% and CMOC Group slipped 3.03%, offsetting broader regional gains.

South Korea's Kospi 100 surged 2.49% to 7,644.23, reaching another record high as semiconductor and equipment stocks led the advance.

Hanmi Semiconductor jumped 26.4%, LS Industrial Systems gained 12.8% and Hyosung Heavy Industries climbed 10.95%.

Australia edges lower on energy weakness

In Australia, the S&P/ASX 200 edged 0.23% lower to 8,766.40, with energy stocks bearing the brunt of weakness despite higher oil prices.

Origin Energy fell 5.01%, Viva Energy Group dropped 3.75% and Zip Co slipped 3.6%.

New Zealand markets remained closed for the Anzac Day holiday.

Dollar softens as oil prices climb on supply concerns

In currency markets, the dollar weakened modestly against major Asia-Pacific peers.

It slipped 0.11% on the yen to trade at JPY 159.21, as it fell 0.47% against the Aussie to AUD 1.3917 and dropped 0.49% on the Kiwi to change hands at NZD 1.6920.

Oil prices moved higher as supply concerns persisted despite the glimmer of diplomatic progress, with Brent crude futures last up 2.44% on ICE at $107.90 per barrel, and the NYMEX quote for West Texas Intermediate gaining 2.12% to $96.40.

Reporting by Josh White for Sharecast.com.