Morning Bid: Chip frenzy goes global

• Japan's Nikkei gained 25% year-to-date while South Korea's index surged 75%, both dramatically outpacing the Nasdaq's 11% and S&P 500's 8% advances
• Oil prices fell below $100 per barrel for Brent crude as Iran reportedly considers a U.S. peace proposal that would begin 30 days of detailed negotiations
• U.S. labor market data showed resilience with ADP private sector jobs beating expectations, setting up Friday's key payrolls report

Market Summary: Global Chip Rally Drives Asian Equities to Outperform U.S. Markets

Key Market Movements:

Asian equity markets are surging as they catch up to this week's tech rally following holiday closures. Japan's Nikkei jumped nearly 6% on Wednesday, led by SoftBank's 20% leap, pushing the index past 61,000 for the first time. Year-to-date, Tokyo has gained 25%, while South Korea's KOSPI has soared 75% in 2026—dramatically outpacing the S&P 500's 8% and Nasdaq's 11% gains.

Companies and Sectors:

The global chip and tech equipment sectors are driving the rally, with the strongest performance concentrated in Asian markets. SoftBank emerged as a notable winner. U.S. corporate earnings are due from Airbnb, CoreWeave, and McDonald's.

Geopolitical Impact:

Potential U.S.-Iran peace deal is boosting market sentiment and pressuring oil prices lower. Crude fell significantly, with Brent and WTI trading around $99 and $93 per barrel respectively on Thursday. Iran is reportedly reviewing the latest U.S. proposal for a 30-day negotiation period. Lower oil prices triggered declining bond yields and supported equity gains, with Wall Street reaching new records and Europe's STOXX 600 gaining 2%.

Economic Data:

April's ADP private sector jobs report exceeded expectations, showing minimal impact from the two-month energy shock ahead of Friday's official U.S. payrolls release. Weekly jobless claims and March consumer credit data are scheduled for Thursday.

Upcoming Events:

UK local elections on Thursday could significantly impact Prime Minister Keir Starmer's position, while the Bank of England meeting is scheduled for next week. Federal Reserve speakers Williams, Kashkari, and Hammack are also on the calendar.