Japan’s Nikkei 225 breached 65,000 for the first time Monday, reaching a record high in holiday-thinned Asia trading. This surge followed reports suggesting that the crucial Strait of Hormuz may soon reopen, which contributed to a decline in oil prices and subsequently bolstered investor sentiment. President Donald Trump stated in a Truth Social post that negotiations with Iran were “proceeding in an orderly and constructive manner,” adding that he had instructed his representatives “not to rush into a deal in that time is on [their] side.”
Oil prices declined by over 5% following Trump’s remarks, alleviating some of the pressure on investors. Prices surged significantly following the blockade on Iranian ports enacted by the Trump administration, coinciding with Tehran’s effective closure of the Strait of Hormuz, a critical artery for global energy transportation. The West Texas Intermediate futures for July were 4.71% lower at $92.06 per barrel in early Asia trade. Brent crude futures for July experienced a decline of 4.42%, settling at $98.96 per barrel.
Japan’s Nikkei 225 concluded Monday’s trading with a notable increase of 2.87%, reaching 65,158.19 after achieving an intraday record. Meanwhile, the Topix experienced a gain of 1.29%, closing at 3,942.57. Taiwan’s Taiex concluded the trading session with a notable increase of 3.26%, reaching a level of 43,644.40, following its achievement of an all-time high. Australia’s S&P/ASX 200 experienced an increase of 0.40%, reaching a level of 8,692. China’s CSI 300 increased by 1.58% to reach 4,921.6, whereas India’s Nifty 50 experienced a rise of 1.09%. Markets in Hong Kong and South Korea are currently closed due to public holidays. U.S. markets will be closed on Monday in observance of Memorial Day.
During Friday’s regular session, the Dow Jones Industrial Average increased by 294.04 points, representing a rise of 0.58%, concluding at 50,579.70. The 30-stock index reached an intraday all-time high and recorded yet another record close. The S&P 500 experienced an increase of 0.37%, concluding the session at 7,473.47. The Nasdaq Composite experienced an increase of 0.19%, concluding at 26,343.97.