Stock markets in Japan and South Korea reached fresh record highs on Monday, driven by enthusiasm over the artificial intelligence boom and as investors awaited a decision on extending the Iran war ceasefire. Oil prices gained more than 2% as U.S.-Iran negotiations continued, including discussions on reopening the Strait of Hormuz, a critical waterway for global oil and natural gas transit.
Asian Markets Surge on AI Optimism
Asian shares mostly advanced, with Japan’s and South Korea’s benchmarks hitting record intraday levels, led by technology-related stocks. Tokyo’s Nikkei 225 gained more than 1.3%, crossing the 67,000 mark for the first time to reach 67,231.28. Shares of SoftBank Group, an investment company heavily focused on AI, rose more than 9% after hitting records last week.
In South Korea, the Kospi index jumped nearly 5% to an all-time high of 8,874.16. Samsung Electronics, the country’s largest company, surged more than 9%. Official data released on Monday showed South Korea’s exports soared 53% year-on-year in May, buoyed by global demand for semiconductors. Over the past month, the Nikkei 225 has risen more than 12%, while the Kospi has soared over 27%.
Other Asian Markets Mixed
Hong Kong’s Hang Seng index traded 0.9% higher at 25,408.96. The Shanghai Composite index edged down 0.1% to 4,063.72 after China reported over the weekend that factory activity softened in May, with signs of slowing new export demand. Australia’s S&P/ASX 200 lost 0.1% to 8,720.30. Taiwan’s Taiex climbed 1.4%, while India’s Sensex added 0.6%.
Oil Prices Rise Amid Iran War Uncertainty
Three months after the Iran war began, uncertainties over a permanent end to the conflict continue to drive market movements and keep oil prices volatile, even as optimism over robust AI demand and strong corporate earnings has fueled stock market rallies, including on Wall Street. On Friday, U.S. President Donald Trump met with advisers in high-level talks but had not yet decided on a tentative plan to extend the Iran war ceasefire by 60 days, while Iran indicated a deal was not finalized. The reopening of the Strait of Hormuz remained in limbo; the strait has been largely closed, and the U.S. has imposed a sea blockade on Iranian ports.
Brent crude oil, the international standard, rose 2.4% early Monday to $93.33 per barrel. It stood at approximately $70 a barrel in late February before the war began. Benchmark U.S. crude was 2.8% higher at $89.76 a barrel.
Wall Street Records Continue
On Friday, Wall Street stocks reached more records, powered by big technology stocks. The benchmark S&P 500 added 0.2% in its seventh straight gain to 7,580.06. The Dow Jones Industrial Average climbed 0.7% to 51,032.46, while the technology-heavy Nasdaq composite gained 0.2% to 26,972.62. Dell Technologies surged 32.8% following stronger-than-expected results and a raised outlook on strong AI-related demand. Microsoft rose over 5.4%, and Broadcom was up 4.7%.
In currency markets, the U.S. dollar rose to 159.48 Japanese yen from 159.25 yen. The euro traded at $1.1645, down from $1.1667.
