Investing.com– Most Asian stock markets rose on Monday, with Japan and South Korea hitting record highs, although broader gains were capped by surging oil prices and stalled U.S.-Iran negotiations.
Regional equities drew support from a strong U.S. lead, where the Nasdaq and S&P 500 closed at fresh highs, lifting sentiment toward chipmakers and AI-linked stocks across Asia.
U.S. stock index futures were little changed in Asian trading on Monday.
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KOSPI, Nikkei hit fresh record highs on tech boost
South Korea’s jumped 2.3% to 6,630.35 points — a new record high. SK Hynix (KS:) shares surged over 6% to a fresh all-time high, while Samsung Electronics (KS:) stock advanced 2.5%.
The KOSPI index climbed nearly 5% last week, driven by robust semiconductor earnings and AI-linked advancements from SK Hynix.
Japan’s rose as much as 1.6% to a record high of 60,652.98 points, while the broader index gained 0.7%.
Investor focus is on the Bank of Japan, which will conclude its two-day meeting on Tuesday with its rate decision and quarterly outlook report.
The BOJ is widely expected to keep its short-term policy rate unchanged at 0.75%, adopting a cautious stance as policymakers assess the economic fallout from surging oil prices and Middle East tensions.
Markets are instead looking for forward guidance, with expectations that the central bank could signal a potential rate hike as early as June or July, as inflationary pressures persist.
US-Iran tensions remain; oil climbs further
The broader sentiment remained cautious as crude oil prices climbed sharply amid deepening supply concerns. Brent crude hovered above $107 per barrel as negotiations between Washington and Tehran stalled and the Strait of Hormuz remained largely closed, disrupting a key global oil supply route.
U.S. President Donald Trump on Saturday canceled a planned envoy trip to Pakistan aimed at advancing Iran negotiations, saying Tehran could initiate talks if it wished.
Beyond Japan, attention remains on U.S. developments, including a Federal Reserve policy decision later this week and a heavy slate of earnings from major technology firms such as Alphabet, Microsoft, Amazon, Meta Platforms, and Apple.
Elsewhere in Asia, China’s and Hong Kong’s index traded flat.
Singapore’s fell 0.5%, while Australia’s edged down 0.2%.
Futures for India’s ticked up 0.1%.