BY COMFOR OGBONNA
Asian stock markets delivered a mixed performance on Monday, with Japan and South Korea posting notable gains as enthusiasm surrounding artificial intelligence continued to drive technology-related shares higher. Meanwhile, oil prices moved lower as investors grew increasingly optimistic about progress in negotiations aimed at securing a lasting peace agreement between the United States and Iran.
Investor sentiment across the region remained influenced by developments in both the technology sector and geopolitical arena. While gains in AI-linked stocks helped support several major indexes, lingering concerns about tensions in the Middle East kept traders cautious.
Japan’s benchmark Nikkei 225 surged 1.6% to close at 72,364.82, extending its record-setting rally. The index touched a new intraday high of 72,831.73 as investors continued to pour money into technology and semiconductor-related companies expected to benefit from the rapid expansion of artificial intelligence technologies worldwide.
Among the biggest gainers, SoftBank Group advanced 2.4% as investors remained optimistic about the company’s AI-focused investments and strategic initiatives. Semiconductor equipment manufacturer Tokyo Electron also climbed 2.3%, reflecting strong demand for chip-related stocks amid expectations of sustained growth in global AI infrastructure spending.
South Korea’s Kospi index rose 0.4% to 9,084.37, remaining close to record territory. The market was supported by strong performances from technology firms, particularly those involved in semiconductor manufacturing. Memory chip giant SK Hynix jumped 4.7% as investors continued to bet on rising demand for advanced memory chips used in artificial intelligence applications and data centers.
Market analysts noted that momentum remains strong in both Japan and South Korea, though some caution that valuations are becoming increasingly stretched after months of gains. Investors are also keeping a close eye on geopolitical developments that could introduce fresh volatility into global markets.
Elsewhere in the region, Hong Kong’s Hang Seng Index fell 1% to 23,690.86, weighed down by weakness in selected technology and property shares. Mainland China’s Shanghai Composite Index edged 0.2% higher to 4,098.01 as investors assessed economic recovery prospects and policy support measures.
Australia’s S&P/ASX 200 slipped 0.1% to 8,822.80, while Taiwan’s Taiex jumped 2.8%, benefiting from strong demand for semiconductor and technology stocks. India’s Sensex also posted gains, rising 0.6% as investors remained optimistic about the country’s economic outlook and corporate earnings prospects.
Oil prices moved lower as diplomatic efforts to bring a permanent end to the conflict involving Iran showed signs of progress. Brent crude, the international benchmark for oil prices, fell 1.4% to $79.42 per barrel. Despite the decline, prices remain significantly above the roughly $70-per-barrel level seen before the outbreak of the conflict in late February.
Diplomatic talks between U.S. and Iranian officials in Switzerland concluded early Monday, with technical-level discussions expected to continue throughout the week. Market participants are closely monitoring the negotiations, as a successful agreement could ease concerns about disruptions to global energy supplies.
Attention has also focused on the Strait of Hormuz, one of the world’s most important shipping routes for oil and natural gas. Although Iran indicated that the waterway had been closed again over the weekend, U.S. officials reported that commercial traffic continued to move through the passage, helping ease fears of a major supply disruption.
Energy analysts cautioned that while progress toward a lasting agreement is encouraging, significant challenges remain. Any setback in negotiations or renewed hostilities could quickly reignite concerns about global energy security and push oil prices higher.
In the United States, investors are preparing for the release of May’s Personal Consumption Expenditures (PCE) Price Index later this week. The report is closely watched because it serves as the Federal Reserve’s preferred measure of inflation. The data could provide important clues about the future direction of U.S. interest rates and monetary policy.
U.S. stock futures traded lower ahead of the inflation report as investors weighed the possibility that persistent price pressures could influence the Federal Reserve’s policy decisions in the coming months.
In currency markets, the U.S. dollar strengthened against the Japanese yen, rising to 161.68 yen from 161.22 yen. The euro slipped to $1.1454 from $1.1473, reflecting cautious sentiment among traders as they awaited further economic data and developments in global financial markets.
Overall, markets began the week balancing strong optimism surrounding artificial intelligence-driven growth against ongoing geopolitical uncertainties and expectations for key economic data that could shape the outlook for interest rates, energy prices, and global investment flows.
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