On Monday, South Korea’s Kospi commenced trading at a new all-time high, driving upward momentum in Asia-Pacific markets, influenced by increasing oil prices and heightened tensions between the U.S. and Iran. President Donald Trump’s dismissal of Tehran’s recent proposal to conclude the war has heightened concerns regarding a protracted conflict in the Middle East. Iran has presented a fresh proposal to U.S. negotiators aimed at resolving the conflict in the Middle East. The semi-official Tasnim news agency in Iran reported that the counteroffer proposed a cessation of hostilities across all fronts and the removal of sanctions on Tehran, according to a knowledgeable source. However, Trump expressed his discontent with Iran’s response, labeling it as “TOTALLY UNACCEPTABLE!” in a post on Truth Social. Israeli Prime Minister Benjamin Netanyahu stated on Sunday that the conflict with Iran is “not over,” as both the U.S. and Israel continue their efforts to limit Tehran’s nuclear aspirations.
Netanyahu’s remarks precede Trump’s upcoming visit to China later this week, during which he is anticipated to engage with Chinese President Xi Jinping. The conflict and the ensuing blockade of the Strait of Hormuz by Iran have led to a significant increase in global energy prices, resulting in a notable rise in gas prices within the United States. The June futures for West Texas Intermediate increased by 3.67%, reaching $99.09 per barrel as of 2:50 am. Brent crude futures for July increased by 3.42%, reaching a price of $104.71 per barrel. South Korea’s Kospi concluded today’s trading session with an increase of 4.32%, reaching 7,822.24 after starting at a new record high, whereas the small-cap Kosdaq remained unchanged at 1,207.34. Index heavyweight SK Hynix experienced a notable increase, rising over 11%, in line with the surge observed in U.S. chip-related equities on Friday.
Japan’s Nikkei 225 experienced volatile trading, declining by 0.47% to reach 62,417.88, whereas the Topix saw an increase of 0.3%, settling at 3,840.93. Nintendo shares experienced a decline of more than 8%, as investors processed the announcement regarding an increase in prices for the Switch 2, coupled with an anticipated decrease in console sales. Australia’s S&P/ASX 200 experienced a decline of 0.49%, settling at 8,701.80. China’s CSI 300 increased by 1.64% to reach 4,951.84, whereas Hong Kong’s Hang Seng index remained unchanged in the final hour of trading. Investors were evaluating data indicating that China’s consumer and producer inflation increased more than anticipated in April, propelled by elevated commodity costs associated with the Middle East conflict.
India’s Nifty 50 experienced a decline of 0.94%. Futures associated with the Dow Jones Industrial Average decreased by 143 points, representing a decline of 0.3%. S&P 500 futures and Nasdaq 100 futures each recorded a decline of 0.3%. Sunday’s movements follow a rally in the S&P 500 and Nasdaq Composite, which increased by over 2% and 4%, respectively, in the previous week. Both indexes achieved their sixth consecutive week of gains — a first for each since 2024. The Dow experienced an increase of 0.2% over the week, marking its fifth consecutive week of gains in the last six weeks.