BY COMFORT OGBONNA
Stock markets in Japan and South Korea climbed to fresh record highs on Monday, driven by strong investor enthusiasm for artificial intelligence growth, robust corporate earnings in the technology sector, and ongoing expectations surrounding a potential extension of the Iran ceasefire agreement.
The rally in Asian equities came alongside rising oil prices and continued uncertainty over Middle East peace negotiations, particularly discussions involving the United States and Iran over the future of the conflict and the possible reopening of the Strait of Hormuz, a critical global energy shipping route.
Oil prices rose more than 2% in early trading as geopolitical tensions remained elevated. Brent crude climbed to $93.33 per barrel, while U.S. West Texas Intermediate crude advanced to $89.76 per barrel. Both benchmarks have surged significantly since late February, when prices were closer to $70 per barrel before the escalation of conflict.
At the same time, global equity markets continued to benefit from strong momentum in technology stocks, especially those tied to artificial intelligence development and semiconductor demand. U.S. futures also edged higher, reflecting sustained optimism across global markets.
In Tokyo, the Nikkei 225 index rose more than 1.3% and crossed the 67,000 level for the first time, closing at 67,231.28 during intraday trading. The index has gained more than 12% over the past month alone, reflecting strong investor appetite for Japanese equities. SoftBank Group, a major investor in artificial intelligence and technology ventures, surged more than 9% after reaching record levels in the previous week.
South Korea’s Kospi index delivered an even stronger performance, jumping nearly 5% to an all-time high of 8,874.16. The rally was led by Samsung Electronics, the country’s largest company, which gained more than 9% as investors continued to bet on rising global demand for semiconductors and AI-related technologies. Over the past month, the Kospi has soared more than 27%, marking one of its strongest rallies in recent years.
Economic data released in South Korea added further support to the market’s momentum. Official figures showed that exports surged 53% year-on-year in May, driven largely by strong demand for semiconductors, reinforcing the country’s central role in global technology supply chains.
Other Asian markets showed more mixed performance. Hong Kong’s Hang Seng index rose 0.9% to 25,408.96, while China’s Shanghai Composite index slipped 0.1% to 4,063.72 after data over the weekend indicated that manufacturing activity softened and export demand weakened.
Australia’s S&P/ASX 200 edged down 0.1% to 8,720.30, while Taiwan’s Taiex gained 1.4%. India’s Sensex also advanced 0.6%, reflecting broad but uneven gains across the region.
The latest moves in global markets come as investors continue to balance two powerful forces: optimism over artificial intelligence-driven growth and persistent uncertainty stemming from geopolitical tensions in the Middle East. While AI-related stocks have fueled a sustained global equity rally, concerns about energy supply disruptions continue to drive volatility in oil markets.
Three months into the ongoing conflict involving Iran, markets remain highly sensitive to developments surrounding ceasefire negotiations and efforts to stabilize the region. Discussions over a potential extension of the ceasefire remain unresolved, with uncertainty also surrounding proposals to reopen the Strait of Hormuz. The waterway is one of the world’s most important energy transit routes, and any disruption has significant implications for global oil supply chains.
On Friday, U.S. President Donald Trump met with senior advisers in high-level discussions regarding a tentative proposal to extend the Iran ceasefire by 60 days. However, no final decision was reached, and Iranian officials have indicated that no agreement has been finalized. The situation has left markets uncertain about the near-term outlook for energy flows from the region.
In the United States, stock markets also continued their upward trajectory. On Friday, the S&P 500 rose 0.2% to 7,580.06, marking its seventh consecutive gain and another record close. The Dow Jones Industrial Average climbed 0.7% to 51,032.46, while the Nasdaq Composite added 0.2% to 26,972.62, supported by strength in large technology companies.
Corporate earnings further reinforced the bullish sentiment in the technology sector. Dell Technologies surged 32.8% after reporting stronger-than-expected results and raising its outlook on robust demand linked to artificial intelligence infrastructure. Microsoft advanced more than 5.4%, while Broadcom gained 4.7%, reflecting continued investor enthusiasm for AI-related hardware and software providers.
As global markets move into a new trading week, investors are expected to remain focused on developments in both geopolitical negotiations and technology-driven growth trends. The interplay between rising energy prices, AI-led equity gains, and shifting economic data continues to shape market direction across regions, keeping volatility elevated even as major indices reach record levels.
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