Asian Markets Hit Record Highs as Oil Prices Dip Following Gaza Ceasefire Deal

Singapore, October 9, 2025 Asian stock markets surged to fresh highs on Thursday, driven by strong investor confidence in artificial intelligence (AI) sectors, even as oil prices declined after Israel and Hamas reached the first phase of a ceasefire deal to end the two-year Gaza conflict. The easing of geopolitical tensions, coupled with renewed optimism in the global tech rally, lifted regional equities to new peaks. U.S. President Donald Trump announced that Israel and Hamas had agreed to the initial stage of his proposed peace plan, including a ceasefire and the release of hostages. Trump also indicated plans to travel to Egypt this weekend to discuss the next phase of the agreement. The news brought some relief to commodity markets, leading to a modest drop in oil prices as fears of supply disruptions eased. Brent crude fell 0.6% to $65.89 per barrel, while U.S. crude declined 0.7% to $62.12. Investor sentiment in equities remained buoyant, with AI-related technology stocks fueling the rally. The S&P 500 and Nasdaq indexes hit record highs, supported by strong inflows into the sector. Analysts at JPMorgan noted in a report that the AI investment cycle continues to attract billions of dollars despite concerns about overvaluation. “The AI theme remains powerful. These daily investment headlines are being rewarded with strength until proven otherwise,” the report said. Earnings expectations for the technology sector have risen sharply, with projected growth now at 20.9% for the upcoming reporting season, up from 15.9% in June. Major players such as Nvidia and Apple continue to lead the momentum, with 81% of companies in the sector seeing upward revisions in earnings estimates. Overall, corporate earnings are expected to rise 8% for the third quarter, alongside a 6.3% increase in revenue. In regional markets, Japan’s Nikkei index climbed 1.5%, approaching record territory as data showed strong foreign investor interest. Offshore funds purchased a net 2.5 trillion yen ($16.4 billion) in Japanese equities during the week ending October 4. Taiwan’s stock market advanced 1.2% to a new record, while MSCI’s broad Asia-Pacific index outside Japan gained 0.3%. Chinese blue-chip shares added 0.4% after reopening from a week-long holiday. Beijing reported robust consumer spending during the break, totaling 809 billion yuan ($113.5 billion) from 888 million domestic trips. However, China also announced new export restrictions on rare earth minerals and equipment, adding a potential point of friction in ongoing trade discussions with the United States. Meanwhile, in the U.S., the Federal Reserve’s latest meeting minutes revealed a cautious approach toward future interest rate cuts, though markets still expect an easing cycle ahead. Futures indicate a 94% chance of another quarter-point rate cut in November, with a total of 44 basis points of easing projected by year-end. The U.S. dollar held firm near an eight-month high against the yen at 152.54, driven by concerns over Japan’s rising debt levels. The euro stabilized at $1.1641 after touching a six-week low amid weak German industrial output data. Gold prices remained strong at $4,037 per ounce, up nearly 4% this week, supported by expectations of lower interest rates and continued central bank buying. The metal also benefited from investor demand for assets perceived as safe from currency debasement and fiscal pressures. With optimism in tech-led growth outweighing geopolitical concerns, Asian markets continued their upward march, even as easing oil prices reflected the tentative calm brought by the Gaza ceasefire agreement. Asian Stocks Hit Record Highs as Oil Prices Fall on Gaza Ceasefire Asian stock markets surged to new highs as investor confidence in AI-driven technology lifted shares across the region. Japan’s Nikkei and Taiwan’s benchmark indexes climbed sharply, following record gains in the S&P 500 and Nasdaq. Meanwhile, oil prices dipped after Israel and Hamas reached the first phase of a U.S.-brokered ceasefire deal, easing fears of supply disruptions. Brent crude slipped to $65.89 a barrel, and U.S. crude fell to $62.12. Gold remained steady above $4,000 per ounce, while the U.S. dollar held firm near eight-month highs against major currencies.