US Pre-Market: JGB Yields Hit New High, Korean Stocks V-Shaped Rebound, Trump Military Threat to Iran, Brent Oil Breaks $111

TradingKey - Driven by the U.S.-Iran war, oil prices continued to climb, with Brent crude breaching $111 per barrel and WTI crude rising to approximately $108. The spike in oil prices exacerbated the bond market sell-off, pushing U.S. Treasury yields higher across the board, with the 30-year yield reaching its highest level in nearly three years. Japan's bond market was even more volatile, with the 10-year yield hitting its highest since 1996 and the 30-year yield reaching a new high since the tenor's inception in 1999.

Asia-Pacific equity markets were hit, but South Korean stocks showed resilience. The Kospi index in Seoul saw its intraday decline widen to as much as 4.7% at one point, but rebounded after a circuit breaker to close 0.31% higher.

Market Volatility

SpaceX-concept fund Destiny Tech100 (DXYZ) jumped more than 10% in pre-market trading; on the news front, Musk stated that he hopes to move forward with SpaceX's initial public offering (IPO) "soon." Additionally, several stocks in the space sector rose, with Rocket Lab (RKLB) up nearly 4%, and Echostar (SATS) up nearly 7%.

Micron Technology (MU) gained more than 3% in pre-market trading at one point; in the first quarter, Bridgewater increased its position in Micron Technology by 586,000 shares, raising its portfolio weighting from 0.93% at the end of last year to 2.23%.

Marvell Technology (MRVL) rose more than 2% in pre-market trading; 13F reports show that Hillhouse established a position in Marvell Technology in the first quarter.

Baidu (BIDU) rose over 4% in pre-market trading; Baidu just reported Q1 2026 results, with quarterly revenue exceeding expectations and AI business revenue accounting for more than half of the total for the first time.

Market Highlights

Samsung’s union strike plans were suppressed by a court order, causing the company’s share price to reverse losses. The court approved part of the injunction filed by Samsung Electronics, restricting union activities and mandating that strike actions "do not affect production".

Trump warns Iran again: "nothing" without a deal; U.S. to consider military options. Trump posted on Truth Social on Sunday that "time is running out" for Iran, warning that it "will have nothing" if action is not taken soon. Trump has spoken with Israeli Prime Minister Benjamin Netanyahu to discuss the possibility of resuming military action against Iran. Axios, citing two U.S. officials, reported that Trump is expected to meet with his national security team this Tuesday (the 19th) to discuss options for renewed military action.

G7 finance ministers and central bank governors are set to meet in Paris on Monday, where the economic shocks from the war in Iran will be the top priority. Borrowing costs for G7 nations have surged in recent weeks, stoking fears of long-term inflation as global oil inventories decline at a record pace.

Russian President Vladimir Putin is set to visit China and will arrive in Beijing this Tuesday. Meanwhile, the White House is promoting a series of agreements, such as China purchasing at least $17 billion in U.S. agricultural products annually through 2028. The U.S. also stated that China would address rare earth shortages, though the Chinese side has made no mention of the matter.

Key Data/Event Preview

On Tuesday, May 19, Japan will release its Q1 Gross Domestic Product (GDP) quarterly growth rate; meanwhile, the G7 Finance Ministers and Central Bank Governors meeting will be held in Paris for two days, from May 18 to May 19.