Asian Markets and Oil Prices Surge Amid AI Boom and Iran Ceasefire Talks

Stock markets in Japan and South Korea reached new heights on Monday. This was driven by excitement around the artificial intelligence (AI) industry and anticipation of developments in Iran ceasefire negotiations. Oil prices increased by over 2% as talks continued between the U.S. and Iran, including discussions on reopening the Strait of Hormuz. This waterway is crucial for global oil and gas transportation. U.S. futures shifted slightly upward.

Asian markets broadly rose, and Japan’s and South Korea’s leading indices achieved record intraday levels. Technology stocks led this advance, fueled by sustained interest in AI and related advanced technologies. Tokyo’s Nikkei 225 gained over 1.3%, surpassing the 67,000 mark for the first time with a close at 67,231.28. SoftBank Group, heavily invested in AI, saw its shares rise over 9% after last week’s record reach. In South Korea, the Kospi index soared nearly 5%, hitting an unprecedented 8,874.16. Samsung Electronics, a major player, climbed more than 9%. Official figures showed South Korea’s exports increased 53% in May compared to the previous year, thanks to strong global semiconductor demand.

The Nikkei 225 rose over 12% in the last month, while the Kospi advanced over 27% in the same timeframe. Meanwhile, Hong Kong’s Hang Seng climbed 0.9% to 25,408.96. The Shanghai Composite dipped 0.1% to 4,063.72, following reports of reduced factory activity in China and decelerating new export demand. Australia’s S&P/ASX 200 fell slightly by 0.1% to 8,720.30. Taiwan’s Taiex rose 1.4%, and India’s Sensex gained 0.6%.

Market fluctuations continue, driven by uncertainty surrounding a definitive end to the Iran conflict three months after its onset. Optimism on strong AI demand and corporate earnings has catalyzed stock market rallies, including on Wall Street. On Friday, U.S. President Donald Trump participated in high-level discussions but had not reached a final decision on a proposed 60-day extension of the Iran ceasefire. Iran had not confirmed any agreement. Negotiations on reopening the Strait of Hormuz remain unresolved. The strait has been mostly shut, and the U.S. implemented a sea blockade on Iranian ports.

Brent crude, the global benchmark, rose 2.4% early Monday to $93.33 per barrel. Before the conflict began in late February, prices were about $70 a barrel. U.S. benchmark crude climbed 2.8% to $89.76 per barrel.

On Friday, Wall Street recorded more highs with strong performances from tech stocks. The S&P 500 increased 0.2% for its seventh consecutive gain, closing at 7,580.06. The Dow Jones Industrial Average advanced 0.7% to 51,032.46, and the Nasdaq composite rose 0.2% to 26,972.62. Dell Technologies surged 32.8% after reporting better-than-expected results and raising its forecast due to strong AI-related demand. Microsoft gained over 5.4%, and Broadcom increased 4.7%.

In currency markets, the U.S. dollar climbed to 159.48 Japanese yen from 159.25 yen. The euro was valued at $1.1645, a decrease from $1.1667.