Asian stock markets experienced a notable surge on Wednesday, August 5, 2026, as strong corporate earnings and renewed demand for technology stocks lifted Wall Street to record highs. Japan's Nikkei index climbed 3.0%, and South Korea's market added 3.4%, continuing its pattern of volatility. MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.5%.

Investors took profits on AMD despite the company's results beating forecasts. Meanwhile, AI and satellite company SpaceX saw its shares fall 7.5%, reversing much of a prior rally due to concerns that capital expenditure spending was consuming all its cash flow. Chris Weston, head of research at broker Pepperstone, commented, "SpaceX continues to execute strongly operationally, but its ambitious investment program means additional capital will almost certainly be required over the medium to longer term. How management funds that growth, and at what cost, is likely to remain a central theme for investors over the coming quarters."

In the futures market, Nasdaq futures dipped 0.1% following earnings results, while S&P 500 futures rose 0.2% after hitting all-time highs on Tuesday.

Currency markets were mostly stable, though the New Zealand dollar slipped 0.2% after data revealed unemployment reached a decade-high of 5.6% in the June quarter.

Treasury Secretary Scott Bessent expressed confidence that Bank of Japan Governor Kazuo Ueda will "do what is best" for Japan's economy. Markets interpreted this as encouragement for further interest rate hikes.

Oil prices and bond yields retreated amid hopes for progress in reopening the Strait of Hormuz, a key oil transit route.

Sources