New Delhi, April 15 -- Morgan Stanley shares climbed 5% on Wednesday after the bank delivered a standout first quarter performance, driven by a resurgence in global dealmaking and record-breaking revenue in its equities trading business.

The bank capitalized on a favorable regulatory shift and heightened market volatility, fueled in part by a major software sector selloff and geopolitical tensions. These factors catalyzed a 36% jump in investment banking revenue to $2.12 billion, largely due to a sharp recovery in M&A advisory fees. Equities trading also reached a historic high of $5.15 billion, while fixed income revenue rose 29% to $3.36 billion as energy market swings boosted commodities trading.

A cornerstone of the quarter was Morg...