South Korea's Kospi Hits Fresh High As Oil Surge, Iran Tensions Keep Asia Markets On Edge

South Korea's Kospi opened 3.67% higher to a record level, while the smaller Kosdaq index edged up slightly.

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Summary is AI-generated, newsroom-reviewed
  • South Korea's Kospi rose 3.67% to a record amid Asia-Pacific market gains
  • Japan's Nikkei 225 gained 0.81%, while Australia's S&P/ASX 200 fell 0.71%
  • US President Trump rejected Iran's proposal to end Middle East conflict
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South Korea's Kospi climbed to another record on Monday, leading gains across Asia-Pacific markets as investors monitored rising oil prices and growing tensions between the United States and Iran.

South Korea's Kospi opened 3.67% higher to a record level, while the smaller Kosdaq index edged up slightly. Japan's Nikkei 225 rose 0.81% and the broader Topix index gained 0.32%. Australia's S&P/ASX 200 fell 0.71%. Hong Kong's Hang Seng index futures traded at 26,250, below the benchmark's previous close of 26,393.71.

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The gains came amid caution in broader regional markets after US President Donald Trump rejected Iran's latest proposal aimed at ending the conflict in the Middle East.

Iran submitted a revised proposal to US negotiators that called for an end to fighting across the region and the removal of sanctions on Tehran, according to Iran's semi-official Tasnim news agency, which cited a source familiar with the discussions.

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Trump, however, dismissed the proposal in a Truth Social post, calling Iran's response "TOTALLY UNACCEPTABLE!"

Middle East In Focus

Investor sentiment remained tied to developments in the Middle East after Israeli Prime Minister Benjamin Netanyahu said the conflict with Iran was continuing.

Netanyahu said on Sunday that the war was "not over" as Israel and the United States continued efforts to limit Tehran's nuclear programme.

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The remarks came ahead of Trump's expected trip to China later this week, where he is scheduled to meet Chinese President Xi Jinping. The conflict and Iran's closure of the Strait of Hormuz have pushed up global energy prices and increased fuel costs in the United States.

US Futures Slip

U.S. stock futures moved lower in early Asian trade as investors assessed geopolitical risks and the impact of higher oil prices on global markets.

Futures linked to the Dow Jones Industrial Average fell 143 points, or 0.3%. S&P 500 futures and Nasdaq 100 futures also declined 0.3% each.

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