Asia Stocks Sweep to New Highs, Oil Slips on Gaza Ceasefire Deal

Asian stock markets surged to fresh record highs on Thursday, lifted by strong gains in technology and AI-related shares, while oil prices eased following reports of a ceasefire agreement between Israel and Hamas, easing geopolitical tensions in the Middle East.

Japan’s Nikkei 225 index jumped 1.5%, nearing its all-time peak, supported by robust foreign fund inflows. Taiwan’s benchmark also hit new records, while Chinese stocks rose as markets reopened after the Golden Week holiday, boosted by encouraging domestic consumption and travel data.

“Investor sentiment remains firmly positive, especially in sectors linked to artificial intelligence and semiconductors,” said analysts, noting that expectations of solid earnings growth and potential U.S. rate cuts later this year are driving market momentum.

Across the region, South Korea’s Kospi and Hong Kong’s Hang Seng Index also advanced, contributing to the broader rally in Asian equities.

Meanwhile, oil prices declined modestly after the announcement of a Gaza ceasefire deal. Brent crude fell 0.5% to around $65.90 a barrel, and U.S. West Texas Intermediate (WTI) slipped 0.6% to $62.10. The ceasefire reduced fears of a wider regional conflict that had inflated the geopolitical risk premium in energy markets.

“The market is unwinding some of the risk premium that was built up over the past few weeks,” said a commodities strategist. “But traders remain cautious as the ceasefire is only in its initial phase.”

Analysts added that while geopolitical risks have eased, oil prices could stay under pressure amid high U.S. crude inventories and uncertainty over future OPEC+ production targets.

The overall picture suggests a cautious optimism in global markets — with Asian equities buoyed by growth prospects, and oil markets finding temporary relief from geopolitical tensions.