Oil prices jumped more than 2 per cent on Monday as negotiations between the United States and Iran continued over a potential ceasefire extension and the reopening of the Strait of Hormuz, while stock markets in Japan and South Korea hit record highs driven by enthusiasm over artificial intelligence.
Brent crude, the international benchmark, rose 2.4 per cent to $93.33 a barrel in early trading, up from around $70 a barrel in late February, before the war began. US benchmark crude gained 2.8 per cent to $89.76 a barrel.
Stock markets in Japan and South Korea hit fresh record highs on Monday on enthusiasm over the artificial intelligence boom and as investors await a decision on the Iran war ceasefire extension.
Asian shares mostly advanced, and Japan’s and South Korea’s benchmarks hit records during intraday trading, led by technology-related stocks, as investors continued to see growth in AI and other advanced technologies.
Tokyo’s Nikkei 225 gained more than 1.3 per cent and crossed the 67,000 mark for the first time, reaching 67,231.28. Shares of SoftBank Group, the investment company that focuses heavily on AI, rose more than 9% after hitting records last week.
In South Korea, the Kospi index jumped nearly 5 per cent and hit an all-time high of 8,874.16. Samsung Electronics, its biggest company, was up more than 9 per cent. Official data on Monday showed that South Korea’s exports surged 53% year-on-year in May, buoyed by global demand for semiconductors.
The Nikkei 225 was up more than 12 per cent over the past month, while the Kospi soared over 27 per cent during the same period.
Hong Kong’s Hang Seng was trading 0.9% higher at 25,408.96. The Shanghai Composite index edged down 0.1% to 4,063.72, after China reported over the weekend that factory activity in May softened with signs of slowing new export demand.
Australia’s S&P/ASX 200 lost 0.1 per cent at 8,720.30. Taiwan’s Taiex climbed 1.4 per cent, while India’s Sensex added 0.6 per cent.
Three months after the Iran war began, uncertainties over a permanent end to the war are still driving market movements and keeping oil prices swinging, even as optimism on robust AI demand and strong corporate earnings have fueled a stock market rally including on Wall Street.
On Friday, US President Donald Trump met with advisers in high-level talks but had not decided yet on a tentative plan to extend the Iran war ceasefire by 60 days, while Iran had said a deal was not finaliSed. The reopening of the Strait of Hormuz was also still in limbo. The strait has been largely closed, and the US has imposed a sea blockade on Iranian ports.
On Friday, Wall Street stocks reached more records powered by big technology stocks, with the benchmark S&P 500 adding 0.2 per cent in its seventh straight gain to 7,580.06.
The Dow Jones Industrial Average climbed 0.7% to 51,032.46, while the technology-heavy Nasdaq composite gained 0.2 per cent to 26,972.62.
Dell Technologies surged 32.8% following strong-than-expected results and after it raised its outlook on strong AI-related demand. Microsoft rose over 5.4%, while Broadcom was up 4.7 per cent.
In other dealings, the US dollar rose to 159.48 Japanese yen from 159.25 yen. The euro was trading at $1.1645, down from $1.1667.
