Asian markets traded mixed on Monday, with Japan's benchmark index scaling fresh highs, as investors balanced strong cues from Wall Street against rising oil prices and geopolitical uncertainty.
Japan and South Korea Lead Gains
Japan's Nikkei 225 surged 1.4% to 60,564.18, hitting a new intraday record, while South Korea's Kospi jumped 2.1%. Taiwan's Taiex also rallied 2.6%, supported by renewed buying in technology stocks driven by the artificial intelligence boom.
Cautious Tone Elsewhere
Elsewhere, markets showed a more cautious tone. Hong Kong's Hang Seng index slipped 0.1%, China's Shanghai Composite edged up 0.2%, and Australia's S&P/ASX 200 fell 0.3%.
Oil Rise and Geopolitics Weigh on Sentiment
Investor sentiment remained fragile as oil prices climbed amid stalled peace talks between the United States and Iran. Brent crude rose more than $1 to $100.57 a barrel, while U.S. benchmark crude added $1.28 to $95.65. Tensions persist despite a ceasefire, with disruptions in the Strait of Hormuz continuing to limit oil flows from the Persian Gulf. US President Donald Trump signalled a pause in diplomacy, saying: "If they want, we can talk but we're not sending people," after cancelling plans to dispatch envoys to Pakistan for further negotiations. He added on social media, "All they have to do is call!!!"
Strong Wall Street Cues
Asian markets drew some support from record highs on Wall Street. The S&P 500 rose 0.8% to close at 7,165.08, while the Nasdaq surged 1.6% to a record finish. The Dow Jones Industrial Average, however, slipped 0.2%. Chipmaker Intel stood out, soaring 23.6% after reporting stronger-than-expected earnings, marking its best performance since 1987.
Focus on Central Banks
Markets are now turning their attention to a packed week of monetary policy decisions from major central banks, including the Federal Reserve, European Central Bank, Bank of Japan and Bank of England. Currency markets were relatively steady, with the dollar easing to 159.34 yen and the euro rising to $1.1723. Despite recent gains — with the S&P 500 up nearly 13% in under a month — uncertainty around oil supply, geopolitical tensions and interest rate outlooks continues to keep investors cautious in the near term.
