- Global markets are off to an arguably optimistic week with the prospect of US-Iran ceasefire agreement boosting investor confidence
- Markets in Japan and China have began on an upbeat momentum with the Nikkei Index hitting a historic high past 65,000 points
- Markets in the US and UK are closed for holidays and this week will have multiple high-impact macroeconomic data like PCE and GDP growth rate
Global stock markets kick off the last week of May with renewed vigor. While trading desks in New York and London are quiet for national holidays, Asian markets started strong. It’s a shorter week for many, with attention turning to important economic data and geopolitical news.
Asian Indices Show Resilience
In Japan, the Nikkei 225 closed with strong momentum, up about 2.87% for the day, around 65,158. This builds on a recent recovery, powered by technology and AI-related stocks. SoftBank Group and semiconductor companies saw the biggest increases, spurred by optimism about potential IPOs and reduced energy market concerns.
The rally began following optimistic social media comments from Washington, which hinted at a diplomatic breakthrough between the U.S and Iran is close. Because Japan is heavily reliant on energy imports, the prospect of a peaceful resolution sent Brent crude oil tumbling below $100 per barrel.
This decline helped alleviate the weeks-long concerns surrounding oil prices. Global asset managers and domestic margin traders were prompted to increase their positions in prominent technology and semiconductor firms, driving the broader TOPIX Index up 1.29% to its own record high of 3,942.57.
China’s Shanghai Composite Index also rose, closing near 4,153, recording a gain of about 0.96%. The move reflected steady domestic sentiment, supported by policy expectations and sector-specific strength in materials and technology components.
European Markets and the LSE
Moving West, the European trading session has been notably subdued. The London Stock Exchange (LSE) is closed today, Monday, May 25, 2026, in observance of the UK’s Spring Bank Holiday. Consequently, the benchmark FTSE 100 Index held at its Friday closing level of 10,466.26.
The index showed resilience near recent highs, with contributions from various sectors despite broader caution around inflation and corporate results. Trading remained measured as participants assessed regional economic signals.
European equities broadly reflected a balanced tone, with gains tempered by awareness of external influences such as energy prices and transatlantic policy considerations.
What to Expect When Wall Street Reopens
Across the Atlantic, Wall Street is also observing a long weekend, with both the NYSE and Nasdaq shuttered for the Memorial Day federal holiday. However, the stage is already set for an intriguing Tuesday morning.
The shortened week is expected to focus on several data releases, including consumer confidence figures, GDP revisions, and the core PCE inflation measure. We’ll also see earnings from big names like Salesforce, Dell, and Costco, with a close watch on AI investment trends and consumer spending.
Geopolitical developments, particularly around U.S.-Iran negotiations, might offer more direction. Progress toward de-escalation could help stabilize energy costs. Still, lighter trading volumes, common after holidays, could exaggerate market swings.
The Nikkei 225 Index surpassed the 65,000-point mark for the first time in history, closing at a record-breaking 65,158.19 points.
Both markets were closed for national holidays, with the UK celebrating the Spring Bank Holiday and the US observing Memorial Day.
Consumer confidence, PCE inflation, GDP revisions, and earnings from tech and retail firms will guide sentiment.
