In Japan and South Korea, stock markets reached new record highs on Monday. Investors showed enthusiasm for advancements in artificial intelligence. They also awaited a decision regarding the extension of the Iran war ceasefire, with oil prices increasing over 2% amid ongoing U.S.-Iran negotiations. These talks include discussions on reopening the Strait of Hormuz, a crucial route for global oil and gas shipment. U.S. futures experienced slight increases.
Asian stocks generally moved upwards. Japan’s Nikkei 225 climbed over 1.3%, passing the 67,000 mark for the first time to reach 67,231.28. This rise was driven by technology-related stocks, with SoftBank Group, heavily invested in AI, seeing a surge of more than 9% after previously setting records. In South Korea, the Kospi index soared nearly 5%, setting a new high at 8,874.16 backed by a surge in Samsung Electronics by over 9%. Official figures showed South Korea’s exports jumped 53% year-on-year in May thanks to strong semiconductor demand.
Over the past month, the Nikkei 225 has increased more than 12%, while the Kospi has risen over 27%. Meanwhile, Hong Kong’s Hang Seng Index gained 0.9% to 25,408.96. The Shanghai Composite Index edged downwards by 0.1% to 4,063.72, following reports of softened factory activity in May and declining export demand. Australia’s S&P/ASX 200 slightly decreased by 0.1% to 8,720.30. Taiwan’s Taiex increased 1.4%, and India’s Sensex rose by 0.6%.
Three months into the Iran conflict, uncertainty about a permanent resolution continues to influence market trends and oil prices, although optimism about AI demand and strong earnings have bolstered stock rallies, including on Wall Street. On Friday, U.S. President Donald Trump met with advisers but had not yet reached a decision on extending the ceasefire by 60 days. Iran noted that a deal was not concluded, while talks on reopening the Strait of Hormuz remained unresolved. The strait has been largely closed, and the U.S. has maintained a sea blockade on Iranian ports.
Early Monday, international Brent crude oil rose 2.4% to $93.33 per barrel. In late February, before the war started, it was about $70 per barrel. U.S. crude increased by 2.8% to $89.76 per barrel. On Friday, Wall Street also saw record levels. The S&P 500 rose 0.2% in its seventh consecutive gain to 7,580.06. The Dow Jones Industrial Average advanced 0.7% to 51,032.46, and the Nasdaq composite, focused on technology, gained 0.2% to 26,972.62.
Dell Technologies experienced a massive 32.8% increase due to better-than-expected results and an improved outlook on AI-related demand. Microsoft shares climbed over 5.4%, while Broadcom saw a 4.7% rise. Additionally, the U.S. dollar appreciated against the Japanese yen, reaching 159.48 yen, compared to 159.25 yen previously. The euro weakened slightly, trading at $1.1645 from $1.1667.