Stock markets in Japan and South Korea climbed to fresh record highs on Monday, fueled by continued investor enthusiasm surrounding artificial intelligence and advanced technology sectors, even as renewed tensions between the United States and Iran kept energy markets on edge.
Oil prices rose more than 3% as investors monitored ongoing negotiations between Washington and Tehran, including discussions aimed at reopening the Strait of Hormuz, a critical route for global oil and natural gas shipments. The gains came after the U.S. military reported striking Iranian military targets following the downing of an American drone by Iranian forces.
Despite geopolitical uncertainty, investor sentiment across much of Asia remained positive, driven by expectations that the AI boom will continue to support growth in the technology sector.
Japan’s benchmark Nikkei 225 advanced 0.9% to close at a record 66,934.33. During the session, the index briefly surpassed the 67,000-point mark for the first time, reaching an intraday high of 67,231.28.
A major contributor to the rally was SoftBank Group, whose shares surged 14%. The technology-focused investment giant, known for its significant exposure to artificial intelligence ventures, overtook Toyota as Japan’s most valuable publicly traded company.
South Korea’s Kospi also reached historic highs, jumping 3.7% to close at 8,788.38 after touching an intraday record of 8,874.16. Shares of Samsung Electronics rose 10.1%, helping drive the broader market higher.
Supporting investor optimism, government data released Monday showed South Korea’s exports surged 53% in May compared with a year earlier, bolstered by strong global demand for semiconductors.
Over the past month, the Nikkei has gained more than 12%, while the Kospi has soared roughly 27%, reflecting growing confidence in the technology sector and the global AI-driven investment cycle.
Elsewhere in the region, Hong Kong’s Hang Seng Index added 0.8% to 25,389.54, while mainland China’s Shanghai Composite slipped 0.3% to 4,057.74 after economic data suggested factory activity weakened in May amid softer export demand.
Australia’s S&P/ASX 200 was little changed, edging down less than 0.1% to 8,729.40.
Taiwan’s Taiex rose 1.4%, extending recent gains, while India’s Sensex dipped 0.2%.
U.S. stock futures also pointed higher, reflecting continued optimism among global investors despite lingering uncertainty over developments in the Middle East and the future of the U.S.-Iran ceasefire.
