Stock Markets Surge Amid AI Growth and Iran War Ceasefire Talks

Stock markets in Japan and South Korea set new record highs on Monday. Enthusiasm over the artificial intelligence sector and anticipation of a decision on the Iran war ceasefire extension drove this trend. Oil prices climbed by more than 2% as U.S.-Iran negotiations continued, focusing on reopening the Strait of Hormuz, an essential route for global oil and gas.

Investors saw positive trends in Asian markets. Japan and South Korea’s benchmarks hit records during intraday trading, buoyed by technology stocks and growth in AI. Tokyo’s Nikkei 225 rose over 1.3%, surpassing the 67,000 threshold for the first time, reaching 67,231.28. Shares of SoftBank Group, known for its AI investments, increased more than 9%, following record highs the previous week.

South Korea’s Kospi index surged nearly 5%, peaking at 8,874.16. Samsung Electronics, South Korea’s most prominent company, saw its shares rise by over 9%. Official data revealed that South Korea’s exports jumped 53% in May compared to the previous year, driven by strong semiconductor demand.

Other Asian markets also saw varied movements. Hong Kong’s Hang Seng was up 0.9% at 25,408.96. Conversely, the Shanghai Composite index dipped by 0.1% to 4,063.72, following a slowdown in factory activity and export demand in China. Australia’s S&P/ASX 200 fell slightly by 0.1% to 8,720.30, while Taiwan’s Taiex grew by 1.4%, and India’s Sensex edged up 0.6%.

Three months since the Iran war started, uncertainties around a permanent ceasefire continue to affect market trends and oil prices. Optimism over AI demand and strong corporate earnings has fueled stock rallies, including on Wall Street. U.S. President Donald Trump met with advisers on Friday but had yet to decide on extending the Iran war ceasefire by 60 days; Iran reported that no deal was finalized.

Oil prices fluctuated, with Brent crude rising 2.4% to $93.33 per barrel. U.S. crude also increased by 2.8%, reaching $89.76. Before the war’s onset in late February, Brent was about $70 a barrel.

Wall Street continued its upward trajectory on Friday, driven by technology stocks. The S&P 500 gained 0.2%, hitting 7,580.06. The Dow Jones Industrial Average increased by 0.7% to 51,032.46, and the Nasdaq composite was up 0.2% to 26,972.62. Dell Technologies saw a significant surge of 32.8% after reporting strong results and raising its outlook due to AI demand. Microsoft and Broadcom also experienced gains, rising over 5.4% and 4.7%, respectively.

In currency dealings, the U.S. dollar strengthened to 159.48 Japanese yen from 159.25. The euro traded at $1.1645, slightly down from $1.1667.