Asia Markets Today | June 1: South Korea stocks hit a fresh record high on Monday, bucking a mixed performance across Asia-Pacific markets as investors monitored lingering uncertainty around US-Iran negotiations after President Donald Trump said he was in "no hurry" to strike a deal to end the conflict. South Korea's Kospi jumped 1.31%, while the small-cap Kosdaq was down 1.58%. Shares of Samsung Electronics rose more than 3% to hit an all-time high.
The 10-year Japanese sovereign bond yield rose to 2.809% on May 20, its highest since 1996, after reports indicated that the government may issue fresh debt to fund the extra budget. Japanese Prime Minister Sanae Takaichi is compiling a supplementary budget to help households with the cost of living, but it has also created skepticism about whether she can stick to her promises about debt issuance.
The budget was largely in line with market expectations, at about three trillion yen ($19 billion), but comes as Japan still struggles with higher energy prices, rising subsidy costs, and a weak yen. The budget also marks a reversal from her earlier position that extra spending was not needed. She also said the total bond issuance for the calendar year of 2026 would remain unchanged from the original budget plan, according to Bloomberg. Takaichi has sought to dispel worries in the bond market, saying that the extra spending would be financed by issuing deficit-covering bonds.
Meanwhile, Japan's Nikkei 225 rose 0.17%, while the Topix declined 0.3%. In Australia the S&P/ASX 200 lost 0.21%. Shares of SoftBank Group rose 5% after the conglomerate on Sunday announced plans to invest 45 billion euros ($53 billion) over the next five years to build artificial intelligence infrastructure in France. Hong Kong markets appeared set for a weaker open. Futures for the Hang Seng index stood at 25,098, lower than the index's last close of 25,182.39.
The US and Iran have still not finalized an agreement to end the conflict, Trump said in an interview with his daughter-in-law, Lara Trump, on Fox News Saturday. He added that he is pressing for a deal that would ensure Iran never acquires a nuclear weapon. While he said he would prefer a swift resolution, he stressed that he was not rushing negotiations and warned that military action could resume if talks collapse.
“I'd like to say I'm in a hurry because gasoline prices are going to come tumbling down, but if you're going to be in a hurry, you're not going to make a good deal,” Trump said. “And slowly but surely we're getting, I think, what we want, and if we don't get what we want we're going to end it a different way.” Crude oil prices rose after hitting their lowest levels in six weeks, as investors reassessed the prospects of a peace agreement between the US and Iran that could restore energy flows through the Strait of Hormuz.
Brent crude climbed toward $93 a barrel after ending Friday at its weakest level since mid-April, while US benchmark West Texas Intermediate traded near $89 a barrel. US stocks climbed on Friday to close at a fresh record, boosted by hopes of a peace deal with Iran and expectations that spending on artificial intelligence will continue propelling corporate earnings growth. The S&P 500 Index closed 0.2% higher, capping off its ninth-straight week of gains, a streak matched just four times since 1985. The tech-heavy Nasdaq 100 Index rose 0.4% while the Dow Jones Industrial Average climbed 0.7%.
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