Stock markets in Japan and South Korea reached new heights, driven by excitement around artificial intelligence and anticipation regarding the Iran war ceasefire extension. Oil prices increased over 2% as negotiations between the U.S. and Iran continued, focusing on reopening the strategic Strait of Hormuz for oil and natural gas transit.
U.S. futures moved up. Most Asian shares advanced, with the Nikkei 225 in Japan and the Kospi in South Korea setting records during intraday trading. This growth was spurred by investor confidence in AI and advanced technologies.
Tokyo’s Nikkei 225 jumped over 1.3%, surpassing 67,000 for the first time and reaching 67,231.28. SoftBank Group, known for its focus on AI, saw its shares increase more than 9% after recent record-breaking performances.
In South Korea, the Kospi index surged nearly 5%, setting a new record at 8,874.16. Samsung Electronics, the largest company in the index, climbed over 9%. Official figures showed South Korea’s exports grew 53% year-on-year in May, driven by a global semiconductor demand.
The Nikkei 225 rose more than 12% over the past month, and the Kospi soared over 27% in the same timeframe. Hong Kong’s Hang Seng increased by 0.9% to 25,408.96, while the Shanghai Composite index slightly declined by 0.1% to 4,063.72, due to reports of slowing export demand from China’s factory activity in May.
Australia’s S&P/ASX 200 fell 0.1% to 8,720.30, and Taiwan’s Taiex rose 1.4%. In India, the Sensex gained 0.6%.
Three months into the Iran war, uncertainties about a permanent resolution continue to affect markets and oil prices. Optimism about robust AI demand and strong corporate earnings have contributed to a stock market rally, including in the U.S.
On Friday, U.S. President Donald Trump met with advisers to discuss extending the Iran war ceasefire by 60 days, although no decision was made. Iran indicated no final agreement had been reached. The reopening of the Strait of Hormuz remains unresolved, while a U.S. sea blockade on Iranian ports persists.
Brent crude oil, a global benchmark, rose 2.4% to $93.33 per barrel. This price was about $70 before the war began in February. U.S. crude increased 2.8% to $89.76 per barrel.
U.S. stock markets hit new records on Friday, bolstered by tech stocks. The S&P 500 rose 0.2% for its seventh consecutive gain, reaching 7,580.06. The Dow Jones Industrial Average increased 0.7% to 51,032.46, and the Nasdaq composite added 0.2% to 26,972.62.
Dell Technologies surged 32.8% after reporting better-than-expected results and raising its outlook due to strong AI-related demand. Microsoft’s shares climbed over 5.4%, and Broadcom’s went up 4.7%.
The U.S. dollar rose to 159.48 Japanese yen from 159.25 yen. The euro traded at $1.1645, down from $1.1667.
AP Business Writers Damian J. Troise and Alex Veiga contributed to this report.