Asian Stock Markets Reach New Heights Amid AI Enthusiasm and Iran Ceasefire Talks

As enthusiasm over the AI boom persists, stock markets in Japan and South Korea saw fresh record highs on Monday. Investors are also keenly observing the ongoing negotiations on the Iran war ceasefire extension. In response to these dynamics, oil prices increased by over 2% as discussions, including the potential reopening of the Strait of Hormuz, continue.

In Asia, shares generally advanced, with Japan’s and South Korea’s benchmarks achieving record levels during intraday trading. This surge was spurred by technology-related stocks, reflecting ongoing growth in AI and other advanced technologies. Tokyo’s Nikkei 225 rose by more than 1.3%, surpassing the 67,000 mark for the first time, peaking at 67,231.28. SoftBank Group, known for its AI investments, saw its shares increase by over 9%, following a previous record-setting week. Meanwhile, South Korea’s Kospi index jumped nearly 5%, achieving an all-time high of 8,874.16, as Samsung Electronics soared over 9%.

Latest data indicated a 53% year-on-year surge in South Korea’s exports in May, driven by global semiconductor demand. Over the past month, the Nikkei 225 increased by over 12%, while the Kospi soared by over 27%. Hong Kong’s Hang Seng index traded 0.9% higher, reaching 25,408.96. The Shanghai Composite index saw a slight dip, down 0.1% to 4,063.72, as China reported a softening in factory activity with signs of slowing export demand. Australia’s S&P/ASX 200 fell 0.1%, ending at 8,720.30. Taiwan’s Taiex rose 1.4%, and India’s Sensex added 0.6%.

Three months into the Iran conflict, market uncertainties continue, influencing oil price fluctuations. Despite these challenges, optimism surrounding strong AI demand and corporate earnings have propelled a stock market rally, including gains on Wall Street. On Friday, U.S. President Donald Trump engaged in high-level talks regarding a possible 60-day extension of the Iran war ceasefire, though no decision was finalized. Iran also indicated that an agreement was yet to be reached. The reopening of the Strait of Hormuz remains uncertain, with the U.S. currently imposing a sea blockade on Iranian ports.

Brent crude oil, the international benchmark, rose 2.4% early Monday, reaching $93.33 per barrel. This is a significant increase from approximately $70 per barrel in late February, before the war’s commencement. Benchmark U.S. crude registered a 2.8% increase, standing at $89.76 per barrel.

On Wall Street, major technology stocks pushed indices to new records. The benchmark S&P 500 added 0.2% in its seventh consecutive gain, reaching 7,580.06. The Dow Jones Industrial Average climbed 0.7% to 51,032.46, while the Nasdaq composite rose 0.2% to 26,972.62. Dell Technologies saw a 32.8% surge after announcing better-than-expected results and revising its outlook due to strong AI demand. Microsoft rose by over 5.4%, and Broadcom increased by 4.7%.

In currency trading, the U.S. dollar rose to 159.48 Japanese yen, up from 159.25 yen. The euro, however, slightly decreased, trading at $1.1645, down from $1.1667.