Rumors of US-Iran Deal Lead to Asian Stock Rally, Samsung Market Cap Surpasses US$1 Trillion

Central News Agency (CNA) Hong Kong, May 6 (CNA) -- Market rumors that the United States and Iran are close to reaching an agreement to end the war led to a renewed sharp decline in international oil prices today, while Asian stock markets surged across the board, closing higher. South Korea's Samsung Electronics, driven by the artificial intelligence (AI) technology boom, saw its market capitalization break through US$1 trillion.

Agence France-Presse reported that investors welcomed US President Donald Trump's decision to temporarily suspend US escort operations in the Strait of Hormuz.

Trump had previously warned that if Iran attacked US vessels, he would 'wipe Iran off the face of the earth.' But he adopted a more moderate attitude yesterday. He posted on social media: ''Project Freedom' (vessel transit operations in the Strait of Hormuz) will be suspended for a short period to see if this agreement can be finalized and signed.'

War Secretary Pete Hegseth emphasized that the US 'does not seek war,' but warned that any attack would face an 'overwhelming and devastating' retaliation.

International oil prices fell about 4% yesterday and continued to fall by up to 3% today, with West Texas Intermediate crude dropping back below US$100 per barrel. The drop in oil prices provided support for stock markets, with the S&P 500 and Nasdaq indexes hitting new historical highs, driving a comprehensive rise in Asian stock markets.

Fiona Cincotta, an analyst at City Index, pointed out that despite shipping routes still being disrupted, investors were reassured by Trump's comments, and diplomatic efforts are continuing.

Seoul's stock market surged over 6% today, closing above the 7000-point mark for the first time, leading Asian stock markets. This was mainly due to Samsung Electronics' share price soaring by 14.4% on the back of surging AI chip demand, pushing its market capitalization past US$1 trillion, making it the second Asian company after TSMC (Taiwan Semiconductor Manufacturing Company) to achieve this milestone.

Asian stocks rose across the board today, with Tokyo, Hong Kong, Sydney, Wellington, Singapore, Taipei, Bangkok, Kuala Lumpur, Jakarta, and Manila stock markets all closing higher. (Compiled by: Liu Shu-chin) 1150506

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