Japan's Nikkei 225 climbed above the 65,000 level for the first time on Monday, as easing oil prices supported risk appetite after reports pointed to possible progress on reopening the Strait of Hormuz.
The benchmark index advanced 2.75% to an all-time high of 65,081.96 in thin holiday trading across Asia. The broader Topix index rose 0.65%.
Australia's S&P/ASX 200 was largely unchanged.
Trading remained shut in Hong Kong and South Korea due to public holidays. U.S. markets were also closed on Monday for Memorial Day.
Investor sentiment improved after U.S. President Donald Trump said discussions with Iran were moving forward and suggested that a wider agreement could be announced shortly. Any sign of reduced tensions around the Strait of Hormuz, a key route for global oil shipments, has weighed on crude prices and supported equities.
In a Truth Social post on Sunday, Trump said negotiations with Iran were "proceeding in an orderly and constructive manner". He also said he had advised his representatives "not to rush into a deal in that time is on our side".
Trump said on Saturday that a deal linked to the reopening of Hormuz, along with other matters, had largely been finalised and could be announced soon. He has previously signalled progress in talks with Iran before tensions resurfaced and crude prices moved higher again.
Crude Extends Losses
Oil prices continued to decline after sharp losses last week. U.S. crude fell more than 8% over the previous week after Trump said he had halted planned airstrikes against Iran to allow additional time for talks. Brent crude dropped more than 5% during the same period. Oil prices have surged more than 30% since the United States and Israel launched attacks on Iran on Feb. 28.
On Monday, West Texas Intermediate crude futures fell about 5% to $91.65 a barrel. Brent crude futures also declined around 5% to $98.30 a barrel.
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