Japan, South Korea Stocks Hit More Records, as Oil Gains on Iran War Ending Fragility
Japan’s Nikkei 225 and South Korea’s Kospi hit record highs Monday as AI-driven tech stocks surged, while oil prices rose over 2% amid ongoing U.S.-Iran ceasefire talks and Strait of Hormuz negotiations. U.S. futures also climbed, with Wall Street tech stocks like Dell, Microsoft, and Broadcom leading gains, while China’s factory activity showed signs of slowing demand.
Stock markets in Japan and South Korea reached fresh record highs Monday, driven by optimism around the artificial intelligence boom and anticipation of a decision on extending the Iran war ceasefire. Japan’s Nikkei 225 rose over 1.3% to 67,231.28, its first crossing of the 67,000 mark, while SoftBank Group shares jumped 9% after hitting records last week. South Korea’s Kospi index climbed nearly 5% to an all-time high of 8,874.16, with Samsung Electronics up over 9%, and May export data showing a 53% year-on-year surge due to global semiconductor demand. Oil prices gained over 2% as U.S.-Iran negotiations continued, including discussions on reopening the Strait of Hormuz, a critical global oil transit route. Brent crude rose 2.4% to $93.33 per barrel, up from $70 in late February before the war began, while U.S. benchmark crude climbed 2.8% to $89.76. Uncertainties over a permanent ceasefire extension remain, despite U.S. President Donald Trump’s high-level talks with advisers on a 60-day extension proposal, which Iran has not finalized. Asian shares mostly advanced, with Hong Kong’s Hang Seng up 0.9% and Taiwan’s Taiex rising 1.4%, though China’s Shanghai Composite edged down 0.1% after softer May factory activity data. Australia’s S&P/ASX 200 declined slightly, while India’s Sensex added 0.6%. The Nikkei 225 has gained over 12% in the past month, while the Kospi surged 27% in the same period, reflecting strong investor confidence in AI and advanced technologies. U.S. stock futures edged higher, following Wall Street’s record-setting Friday, where the S&P 500 reached 7,580.06 in its seventh straight gain. The Dow Jones rose 0.7% to 51,032.46, and the Nasdaq climbed 0.2% to 26,972.62, led by tech stocks. Dell Technologies surged 32.8% after strong earnings and an AI-driven demand outlook, while Microsoft and Broadcom rose 5.4% and 4.7%, respectively. The U.S. dollar strengthened to 159.48 yen, and the euro traded at $1.1645. Market movements remain volatile three months into the Iran conflict, with oil prices and geopolitical tensions influencing investor sentiment alongside AI-driven growth. The Strait of Hormuz’s status and the ceasefire extension remain unresolved, keeping global markets on edge despite robust corporate earnings and tech sector rallies.
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