Business
Asian Stocks Hover Near Record Highs Amid Tech Earnings Boost and Renewed AI Rally
Asian stock markets experienced a general upward trend on May 6, 2026, driven by diplomatic relief regarding U.S.-Iran tensions. A temporary suspension of U.S. naval operations in the Strait of Hormuz led to a 2% decline in crude oil prices, which helped mitigate regional inflationary concerns and bolstered investor sentiment across several major Asian indices.
Key takeaways
- Falling oil prices provided a relief rally for the region by reducing concerns over inflation.
- The KOSPI index reached a significant milestone by surpassing 7,000 points.
- Chinese stocks saw a rebound following the holiday period, supported by strong export data.
- The Nikkei 225 achieved a new all-time high, though it faced increased market volatility.
- AI-driven earnings from major tech players like Apple, Microsoft, and Samsung Electronics have reignited the AI trade, pushing Asian equities near record highs and lifting global markets alongside them.
- Markets remain resilient despite geopolitical tensions around the Strait of Hormuz, with investors prioritizing strong earnings momentum over ongoing uncertainty between the U.S. and Iran.
- Elevated risk appetite across equities, credit, and speculative trading suggests markets may be pricing in too much optimism, making upcoming economic data and earnings validation critical to sustaining the rally.
The MSCI Asia equities gauge climbed 1.5%, approaching its all-time high set on February 27, just before the US-Israel war on Iran began. Benchmark indexes in South Korea and Taiwan both jumped more than 3% to records in a revival of the AI trade. Futures for the S&P 500 and the Nasdaq 100 rose after the Wall Street gauges closed at new highs on Friday on earnings from megacap technology companies, including Apple.
South Korea’s KOSPI was the best performer in the region, surging 3.5% to a record high, boosted chiefly by strong gains in memory chipmakers Samsung Electronics and SK Hynix, both of which reported bumper first-quarter earnings. Hong Kong’s Hang Seng index jumped 1.7%, aided by a rebound in local technology stocks, with Baidu, SMIC, and Xiaomi each surging over 4%.
Forecast-beating results from Apple, Google, Microsoft, and Samsung reawakened interest in the AI sector after the market turbulence caused by the US-Israeli strikes on Iran at the end of February. Companies in the S&P 500 are on track to report earnings growth of 27.1%, the highest rate in more than four years, according to FactSet.
Geopolitical Signals Mixed
Markets opened on an optimistic note after President Donald Trump said the US would begin guiding ships not involved in the Iran conflict through the Strait of Hormuz from Monday. However, a senior Iranian official warned that Tehran would consider any US interference in the Strait a ceasefire breach, according to an AFP report.
Trump described discussions with Tehran as “very positive” after Washington received Iran’s latest proposal to end the war. Iran’s proposal called for a complete end to the conflict within 30 days along with guarantees against renewed strikes, according to the semi-official Tasnim News Agency.
Currencies and Commodities
The Bloomberg Dollar Spot Index was little changed. The Japanese yen was little changed at 157.03 per dollar, while the offshore yuan held steady at 6.8261 per dollar. The yen’s recent rally was said to have come on the back of Japanese government intervention, with officials reportedly spending at least $32 billion in the foreign exchange market, their first such move to prop up the currency since 2024. West Texas Intermediate crude fell 0.2% to $101.77 a barrel, while spot gold fell 0.2% to $4,602.91 an ounce.
Caution Amid Optimism
Chris Weston at Pepperstone cautioned: “After a strong April for risk assets, we need to remain open-minded about what May will bring. This week should provide early signals, but with risk assets pricing in a lot of good news, and rightly so, the time for that to be validated may now be here.”
“The market is being very patient with this level of uncertainty because it is focused on the other side of the conflict, which may be too optimistic,” said Joe Gilbert, a portfolio manager at Integrity Asset Management.
Risk-taking has spread well beyond equities, with high-yield credit spreads near multi-year tights and retail traders piling into prediction markets and zero-day options. The rally has held through the war in Iran, oil above $100 a barrel, and a Federal Reserve that has signalled rates will stay higher for longer amid elevated energy costs
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Target recalls popular baby wipes after FDA finds potentially harmful bacteria
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Target is recalling several Up & Up baby wipes products sold nationwide after testing identified potentially dangerous bacteria that could cause serious infections, particularly in infants and young children.
According to a recall notice posted Friday by the U.S. Food and Drug Administration (FDA), Target is voluntarily recalling certain lots of Up & Up Fragrance Free Baby Wipes and Up & Up Fresh Cucumber Scented Baby Wipes following customer complaints about product discoloration.
FDA testing identified the presence of Burkholderia cepacia complex and Burkholderia gladioli in samples of the affected wipes.
Health officials warned that products contaminated with the bacteria could lead to serious and potentially life-threatening infections. The wipes are primarily used on newborns, infants and young children, a group considered particularly vulnerable because of their developing immune systems.
TARGET TO CUT PRICES ON 3,000 ITEMS AS INFLATION REMAINS ABOVE FED TARGET

Up & Up Fragrance Free Baby Wipes sold at Target stores nationwide are included in a voluntary recall announced June 2026. (FDA / Unknown)
The FDA said healthy individuals who use the contaminated wipes on skin with minor cuts or abrasions may develop localized infections. However, infections in immunocompromised individuals, newborns and infants could spread into the bloodstream and potentially cause sepsis or pneumonia.
The recalled wipes were manufactured by supplier Sapro Temizlik Urunleri and sold at Target stores nationwide as well as through Target.com.
Target and the manufacturer have received a number of consumer complaints and adverse event reports alleging product discoloration and symptoms including skin irritation, eye irritation and infections that may be linked to use of the wipes. The reports remain under investigation.
A representative for Target did not immediately respond to FOX Business’ request for comment.
TARGET SET TO OPEN ITS 2,000TH STORE, PLANS TO OPEN HUNDREDS MORE IN NEXT DECADE

A three-pack of Up & Up Fresh Cucumber Scented Baby Wipes is shown. Target is recalling certain baby wipes products after FDA testing identified potentially harmful bacteria in product samples. (FDA / Unknown)
The recall affects multiple sizes of Up & Up Fragrance Free Baby Wipes, including 20-count, 72-count, 216-count, 800-count and 1,200-count packages, as well as Up & Up Fresh Cucumber Scented Baby Wipes sold in 72-count, 216-count and 800-count packages.
Consumers are being urged to stop using the recalled wipes immediately and return them to any Target store for a full refund.
Target said customers seeking additional information can contact Target Guest Relations at 1-800-440-0680.
The recall is being conducted with the knowledge of the U.S. Food and Drug Administration, and Target said it is continuing to investigate the matter in coordination with the manufacturer.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TGT | TARGET CORP. | 122.57 | -1.28 | -1.03% |
According to the FDA, the affected Up & Up Fragrance Free Baby Wipes were manufactured between Nov. 7, 2025, and May 5, 2026, and carry expiration dates ranging from May 10, 2028, through Nov. 5, 2028.
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The recalled Up & Up Fresh Cucumber Scented Baby Wipes were manufactured between Dec. 29 and Dec. 30, 2025, and carry expiration dates ranging from June 29, 2028, through June 30, 2028.
A complete list of affected UPCs, manufacturing codes and package sizes is available in the FDA recall notice.
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So obviously, the control of our destiny is very, very important, because it gives us the ability to pivot and move quick, make adjustments, expand those areas that make the most sense and frankly, leverage the internal capability. But we’ve been able to do that because, although we did the transition, we’ve essentially brought the entire Ascensia commercial organization over under Brian’s leadership, and that really has made a seamless process that we’ve been very excited to be able to execute against.
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