Market UpdatesMay 12, 20262 Min

Global Market Wrap: Asia-Pacific Markets Trade Mixed After Donald Trump Casts Doubt On Iran Truce, Oil Rises

We are back with quick updates on global stock markets and major developments across some of the top companies worldwide.

Asia-Pacific markets traded mixed on Tuesday as investors largely brushed aside fresh concerns over the fragile US-Iran ceasefire. The US President Donald Trump warned that the truce was on “massive life support” following what he called an unacceptable response from Tehran to Washington’s proposal to end the conflict.

Japan’s Nikkei 225 added 0.5% to 62,742, while South Korea’s Kospi slipped 2.2% to 7,643 after notching a fresh record high on Monday. Australia’s S&P/ASX 200 dropped 0.3% to 8,670. Meanwhile, Hong Kong’s Hang Seng Index closed 0.2% lower at 26,347 and Singapore’s Straits Times Index traded flat, closing 0.03% lower at 4,941.

Overnight in the US, the S&P 500 edged higher, supported by gains in major technology stocks even as oil prices rose after Trump rejected Iran’s latest proposal to end the conflict. The S&P 500 rose 0.19% to close at 7,412.84, while the Nasdaq Composite added 0.1% to finish at 26,274.13. Both indexes touched fresh intraday record highs and ended the session at all-time closing highs. The Dow Jones Industrial Average gained 95.31 points, or 0.19%, to close at 49,704.47.

Oil prices rose after Trump said the ceasefire with Iran was on “life support,” raising concerns that tensions in the Middle East could continue. International benchmark Brent crude futures for July rose 2.43% to $106.74 a barrel, while US West Texas Intermediate futures for June gained 2.91% to $100.92 per barrel.

Gold prices were mostly lower on Tuesday as investors assessed developments in the Middle East and awaited key US inflation data for clues on interest rate expectations. Spot gold slipped 0.8% to $4,697 an ounce after touching a three-week high earlier in the session, while US gold futures for June delivery declined 0.5% to $4,704. Spot silver fell 2.2% to $84.18 per ounce.

Here’s a look at some of the important developments across the global markets:

OpenAI, Microsoft Cap Revenue-Sharing Payments At $38 Billion

OpenAI and Microsoft have reportedly agreed to cap total revenue-sharing payments at $38 billion. The two companies renegotiated their contract last month, allowing OpenAI greater flexibility to pursue partnerships with firms such as Amazon and Google. The payment cap could also strengthen OpenAI’s case with investors as the company moves towards a potential public listing.

SoftBank Group Seen Posting Strong Profit As OpenAI Stake Gains Value

SoftBank Group is likely to report another strong quarterly profit on Wednesday, helped by the rising value of its investment in OpenAI, though analysts are growing cautious about the debt needed to support the bet. The Japanese technology investor has benefited from OpenAI’s sharp valuation jump, with the ChatGPT maker reaching an $840 billion valuation in its latest funding round in February. TD Cowen analyst Krish Sankar estimates SoftBank’s roughly 11% stake in OpenAI was worth about $80 billion at the end of March, up from $54.4 billion at the end of December.

Byron Allen To Take Control Of BuzzFeed In $120-Million Deal

BuzzFeed said that media entrepreneur Byron Allen will become the company’s next CEO after agreeing to buy around 52% stake in the digital media firm for $120 million. Under the deal, Allen Family Digital will buy 40 million BuzzFeed shares at $3 each, representing a premium of nearly 266% to Friday’s closing price. Shares of BuzzFeed jumped about 156% in extended trading on Monday following the announcement. According to LSEG data, BuzzFeed’s market value stood at around $31 million before the deal was announced.

Hedge Funds Log Biggest Weekly Buying In Korea, Japan, Taiwan Stocks In Decade

Global hedge funds sharply increased their exposure to Asian equities last week, with buying in South Korean, Japanese and Taiwanese stocks reaching the highest weekly level in more than a decade, according to a Morgan Stanley client note. The bank said the purchases came from clients across regions and investment strategies, making the week ended May 7 the strongest week for buying in notional terms in over 10 years. Morgan Stanley did not disclose specific figures.

SoftBank Group Founder Weighs Up To $100-Billion Investment In France

SoftBank Group founder Masayoshi Son is reportedly considering investments of up to $100 billion in France, including a multibillion-dollar artificial intelligence infrastructure project. Son has discussed plans for a large AI data centre project in France and could launch the initiative alongside French President Emmanuel Macron in the coming weeks. Technology companies have been investing heavily in data centres to support growing demand for generative AI services.

UK Government Moves Towards Full Nationalisation Of British Steel

Britain could fully nationalise British Steel under new plans announced by Prime Minister Keir Starmer, after efforts to find a buyer for the Chinese-owned company failed. Starmer said the government would introduce legislation allowing it to take ownership of the Scunthorpe steelworks in northern England, securing the country’s last remaining primary steelmaking operations. The steel plant supplies the rail, construction and automotive sectors, but has faced pressure in recent years from high energy costs in Britain and excess global steel supply.

Germany Property Prices Extend Recovery With 2.2% First-Quarter Rise

German property prices rose 2.2% in the first quarter from a year earlier, banking association VDP said, extending the sector’s recovery after a long downturn. Residential property prices increased 2.3% during the period, while office building prices rose 1.9% and retail property prices gained 1.5%. The latest gains suggest the German real estate market continues to stabilise following a deep slump, although VDP said it remains unclear how tensions in the Middle East could affect the sector going forward.

Australian Company To Turn Gas Extraction By-Product Into Diesel Fuel

Darwin-based Global Resource Recovery (GRR) is planning to produce diesel from locally sourced gas condensate as part of efforts to build a domestic fuel supply. The company currently operates from a former biodiesel plant, recycling waste oils, glycols and other chemicals generated by Darwin’s LNG export industry. GRR said it is finalising agreements with two companies to buy gas condensate extracted from gas wells in Central Australia, amid ongoing global fuel supply concerns.