Asian Markets Wrap | Nikkei posts strongest rally | Softbank surges as Nvidia's Earnings Boost AI Stocks

22 May 2026 , 07:42 PM

INDEX SNAPSHOT

• SSE Composite (China) — 4,112.90 | +0.87%
• Hang Seng (Hong Kong) — 25,606.04 | +0.86%
• Nikkei 225 (Japan) — 63,338.85 | +2.68%
• KOSPI (South Korea) — 7,847.71 | +0.41%
• Nifty50 (India) — 23,719.30 | +0.27%

China — SSE Composite | 4,112.90 | +0.87%

Chinese markets advanced as peace talk optimism lifted risk appetite across the region. The broader CSI 300 added 1.3%, with technology stocks continuing to lead inflows on the back of the global AI momentum narrative.

Hong Kong — Hang Seng | 25,606.04 | +0.86%

The Hang Seng moved higher as investors assessed ongoing US-Iran diplomatic efforts and the broader easing of Middle East risk. The index was supported by gains in technology and consumer names, tracking the positive mood from Thursday’s sharp rally across the region.

Japan — Nikkei 225 | 63,338.85 | +2.68%

The Nikkei posted its strongest session in recent weeks, closing above 63,300, with the Topix also adding 1%. SoftBank Group was among the standout performers, extending Thursday’s near-20% surge as the market continued to price in the implications of Nvidia’s record quarterly results for Japan’s AI investment cycle.

South Korea — KOSPI | 7,847.71 | +0.41%

The KOSPI added to Thursday’s massive 8.42% rally, holding near all-time highs as semiconductor stocks remained well bid. The Kosdaq jumped nearly 5%, reflecting continued enthusiasm for smaller tech names following the Samsung wage deal and Nvidia’s blowout earnings.

India — Nifty 50 | 23,719.30 | +0.27%

The Nifty edged modestly higher, consolidating the week’s gains against a broadly positive regional backdrop. Markets remained measured, with investors awaiting further clarity on the Iran peace deal before committing to fresh positions heading into the weekend.

Read more on Indian Markets here

 

Key News & Impact on India

1. Iran Insists on Keeping Enriched Uranium — Peace Deal Hits Key Stumbling Block

• Iran’s supreme leader issued a directive requiring the country’s enriched uranium stockpile to remain within Iranian borders, directly contradicting a core US demand for any peace agreement.
• US Secretary of State Marco Rubio acknowledged “good signs” toward a deal but stated it would be “unfeasible” if Iran pushed ahead with plans to charge tolls on vessels using the Strait of Hormuz, adding that “no one in the world” supports such a system.
• Tehran and Washington remain at odds on two fundamental issues — nuclear stockpiles and Strait access — even as both sides signal a desire to end the conflict.

For India, a deal delayed or derailed means crude imports through the Strait remain uncertain, keeping oil prices elevated and sustained pressure on the current account deficit, the Rupee, and RBI’s monetary policy flexibility.

2. Samsung Strike Averted in Last-Minute Wage Deal — Global Chip Supply Secured

• Samsung Electronics reached a tentative agreement with its union just hours before a planned 18-day strike involving over 48,000 workers was set to begin on May 21, averting what would have been the largest work stoppage in the company’s history.
• The majority of striking workers are employed in memory chip production — a critical input for AI hardware produced by Nvidia and AMD — making a potential supply disruption a direct threat to the global technology sector at a time of acute chip shortages.
• The deal included a special bonus provision triggered if Samsung achieves $130 billion in operating profit, a target the company is widely expected to surpass given current AI-driven demand trends.

For India, the resolution secures continued supply of memory chips that underpin data centres, smartphones, and AI infrastructure. Any resumption of strike threats or breakdown of the tentative agreement remains a key risk to monitor for Indian technology firms and data centre operators.

3. Nvidia Posts Blowout Earnings — AI Spending Cycle Accelerates

• Nvidia’s quarterly results, released after the US close on Wednesday, triggered a sharp rally across Asian technology stocks on Thursday and continued to lift markets into Friday’s session.
• SoftBank Group surged nearly 20% in Thursday’s session as Japan’s largest technology investor moved to price in the AI infrastructure boom signalled by Nvidia’s results.
• Japan’s flash manufacturing PMI for May came in at 54.5, remaining firmly in expansion territory despite slipping slightly from April’s 55.1, with analysts noting that external demand had held up exceptionally well despite the ongoing US-Iran conflict.

For Indian IT firms, Nvidia’s results confirm that the AI infrastructure spending cycle remains firmly intact. Companies with data centre management, AI inference, and cloud migration practices are well positioned to benefit as hyperscaler capex continues to expand through the second half of 2026.

4. Three Supertankers Transit Hormuz — Partial Reopening Offers Temporary Relief

• Three supertankers successfully passed through the Strait of Hormuz on Wednesday, marking the first significant commercial passage through the waterway since the conflict began.
• Brent crude nonetheless rose 2.96% to $105.62 per barrel on Friday, reversing some of Thursday’s declines, as investors weighed the limited scale of the transit against the unresolved sticking points in peace negotiations.
• The passage was seen as a cautious positive signal, though analysts noted that three tankers represent a fraction of the volume that normally moves through the strait on any given day.

For India, even a partial resumption of Hormuz traffic is meaningful. The country imports over 80% of its crude requirements, with a significant share sourced from Gulf producers. Any normalisation of traffic — however limited — reduces the supply disruption premium baked into oil prices and offers modest relief on the import bill.

5. Japan’s April Exports Surge 14.8% — Semiconductor Shipments Lead

• Japan’s export growth in April came in at 14.8% year-on-year, the fastest pace since January and well ahead of analyst forecasts, driven primarily by a surge in semiconductor equipment and electronic component shipments.
• Imports also grew 9.7%, beating expectations, pointing to resilient domestic demand despite the oil price headwind from the Middle East conflict.
• The strong trade data pushed the Nikkei 3.14% higher on Thursday, extending into Friday’s 2.68% gain.

Japan’s export strength is a positive signal for the broader Asian technology supply chain. For India, robust Japanese semiconductor equipment exports confirm that the global chip production capacity expansion is on track — a supportive backdrop for Indian technology firms reliant on downstream AI hardware availability.