Asian shares are mixed and oil jumps 4% after Trump rejects Iran’s response to ceasefire proposal

Asian stocks reacted unevenly on Monday after U.S. President Donald Trump rejected Iran’s response to a ceasefire proposal, labeling it 'TOTALLY UNACCEPTABLE' in a social media post. Tokyo’s Nikkei 225 dropped 0.4% to 62,486.84, while South Korea’s Kospi rose 4.1% to 7,804.71, driven by tech gains from Samsung Electronics and SK Hynix. Hong Kong’s Hang Seng fell 0.3%, and China’s Shanghai Composite climbed 0.9% following strong factory price data and export figures. Oil prices jumped over 4% as tensions escalated, with Brent crude reaching $105.57 per barrel and U.S. crude at $99.89. The Strait of Hormuz remains closed, and the U.S. continues a sea blockade of Iranian ports, keeping supply risks elevated. Analysts warn prices may stay high due to prolonged disruptions. The Iran conflict will be discussed during Trump’s meeting with Chinese President Xi Jinping later this week, as the U.S. pressures Beijing to use its influence on Tehran. ING analysts noted China’s role could be pivotal but cautioned optimism is premature. Wall Street had set new records Friday, with the S&P 500 hitting 7,398.93 amid strong U.S. jobs data, despite ongoing war shocks. Tech stocks in Japan and South Korea have surged recently, with the Nikkei and Kospi up over 10% and 30% in the past month, respectively. However, broader Asian markets remain volatile, reflecting uncertainty over the Iran war’s economic impact. Australia’s S&P/ASX 200 and India’s Sensex both declined, while Taiwan’s Taiex rose slightly.