Market Summary - May 22, 2026
Overview
On May 22, 2026, Asian equities continued their upward trend for the second consecutive session, buoyed by a shift in capital towards AI-related companies and a resilient sentiment on Wall Street. The MSCI Asia Index saw an increase of approximately 1%, with Japan's Nikkei leading the charge with a notable rise of 2.7%.
Key Market Movements
- SoftBank: Shares surged by 11% due to positive expectations regarding its involvement in AI infrastructure.
- Lenovo: Achieved its highest stock price in 26 years in Hong Kong, driven by strong performance in AI-related sectors.
- Nasdaq 100 Futures: Increased by 0.4%, indicating a positive outlook for the US market.
- European Indices: Expected to open higher, reflecting the positive sentiment from the US and Asia.
Geopolitical and Economic Factors
Despite the positive market movements, geopolitical tensions continue to pose risks. Brent crude oil prices fell below USD 102 per barrel, even as Iran signaled a tougher negotiating stance regarding the Strait of Hormuz and the presence of enriched uranium in the country. Gold prices also dipped towards USD 4,540 per ounce, indicating some profit-taking amidst ongoing geopolitical concerns.
The Japanese yen remained weak, trading near 159 against the dollar, following a key inflation reading that came in below expectations. In Germany, the GfK consumer sentiment index improved to -29.8 from -33.3, surpassing the consensus forecast of -34. Additionally, Germany's final Q1 GDP growth was confirmed at 0.3% quarter-on-quarter, aligning with expectations.
Corporate Earnings and Projections
In the tech sector, OpenAI maintained its revenue lead over Anthropic in Q1, generating approximately USD 5.7 billion, which is about USD 1 billion more than Anthropic. However, Anthropic is rapidly scaling, with its annualized revenue nearing USD 45 billion, significantly higher than OpenAI's USD 25 billion. Anthropic is also projecting a strong second quarter, with expected revenue doubling to USD 11 billion and projected profits around USD 600 million. Both companies are reportedly planning initial public offerings (IPOs) this year.
Technical Analysis
The Nasdaq futures have resumed trading above the 29,550 level after a brief pullback, indicating bullish momentum. The index has moved above both hourly exponential moving averages, suggesting improving market conditions. The Relative Strength Index (RSI) is near 60, indicating that the market is not yet in extreme overbought territory. Key support levels are identified in the 29,100–29,000 range, while major resistance is noted near the psychological 29,750 level and the round 30,000 mark.