- Asian stocks rose despite US-Iran diplomatic tensions and higher oil prices
- Japan's Nikkei 225 hit a record high of 60,388, Topix gained 0.6%
- South Korea's Kospi jumped nearly 2% to a new record level
Asian stock markets traded higher on Monday as investors looked past renewed diplomatic setbacks between the US and Iran, even as escalating tensions in the Middle East kept oil prices elevated. The MSCI AC Asia Pacific index popped 1.3%.
Japan's benchmark Nikkei 225 soared as much as 1.1% to hit a fresh peak of 60,388, while the broader Topix gained 0.6%. South Korea's Kospi jumped nearly 2% to also notch a record level.
In Australia, the S&P/ASX 200 slid 0.65%. Hong Kong Hang Seng index futures were at 25,879 compared with the index's last close of 25,978.07.
Iran, through Pakistani mediators, gave the US a new proposal for reaching a deal on the reopening of the Strait of Hormuz and the ending of the war, with nuclear negotiations postponed for a later stage, Axios reported. US President Donald Trump on Saturday scrapped plans to send special envoy Steve Witkoff and Jared Kushner to Pakistan for ceasefire talks.
Meanwhile, futures tied to the Dow Jones Industrial Average fell 0.2% or 130 points. S&P 500 futures declined 0.3%, while contracts for Nasdaq 100 slipped 0.3%. The S&P 500 and Nasdaq Composite ended last week at fresh all-time highs.
The dollar was marginally lower against a basket of major currencies. The Japanese yen was flat at 159.32 per dollar.
Oil Prices
Oil prices climbed sharply as efforts to revive peace talks between the US and Iran faltered, leaving the Strait of Hormuz effectively shut and deepening a global supply crunch. Brent crude for June settlement rose 2.2% to $107.66 a barrel, after touching an intraday high of $107.97, while WTI for June delivery gained 2.2% to $96.47, holding near multi-month highs.
The standoff in the narrow waterway continues as concerns grow over global economic stability and energy supplies, with senior Iranian lawmaker Ali Nikzad saying Tehran will not allow a return to pre-war conditions in the strategic waterway, as per local media reports.
ALSO READ: Brent Crude Surges Past $107 As Hormuz Stays Shut, Iran-US Talks Stall
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