Asian shares mostly rose on Monday, while oil prices plunged after US President Donald Trump said talks to end the war with Iran were making progress.
Japan’s benchmark Nikkei 225 surged 3.1 per cent in morning trading to 65,321.56. Australia’s S&P/ASX 200 added 0.4 per cent to 8,692.70. The Shanghai Composite edged up 0.4 per cent to 4,127.53.
Trading was closed in South Korea and Hong Kong for holidays marking Buddha’s birthday. Trading will be closed in the US on Monday for Memorial Day.
Trump said negotiations with Iran were “proceeding in an orderly and constructive manner.” Meanwhile, regional officials told The Associated Press on Sunday that the United States is close to reaching a deal with Iran that would end the war, reopen the Strait of Hormuz and see Iran give up its stockpile of highly enriched uranium,
Reopening the Strait of Hormuz will help decide the direction of oil prices. The closure has prevented oil tankers from exiting the Persian Gulf and delivering crude to customers worldwide. Japan, for instance, imports almost all its oil, most of it through the strait.
“Markets are rapidly transitioning from pricing geopolitical fear toward pricing a potential peace dividend as Hormuz reopening expectations pressure oil and the dollar lower,” analyst Stephen Innes said in a commentary.
Early Monday, benchmark US crude was down $4.35 at $92.25 a barrel. Brent crude, the international standard, sank $4.16 to $99.38 a barrel.
In currency trading, the US dollar declined to 158.80 Japanese yen from 159.16 yen. The euro cost $1.1641, up from $1.1605.
Friday On Wall Street, stocks finished their eighth straight winning week, the best such streak since 2023. That’s even though a survey showed US consumers are feeling even worse about the economy.
The S&P 500 added 0.4 per cent and pulled closer to its all-time high set in the middle of last week. The Dow Jones Industrial Average rose 0.6 per cent, and the Nasdaq composite gained 0.2 per cent.
Recent earnings reports from US companies that topped analysts’ expectations also helped markets. But worries about inflation have pushed bond yields higher worldwide.
The yield on the 10-year Treasury edged down to 4.56 per cent on Friday from 4.57 per cent on Thursday, but it remains well above its 3.97 per cent level from before the war.
