Stock markets in Japan and South Korea reached new record highs on Monday, driven by enthusiasm surrounding the artificial intelligence (AI) boom. Investors are closely monitoring ongoing negotiations regarding a ceasefire extension in the Iran war, contributing to a cautious yet optimistic market atmosphere.

Oil prices surged more than 2% as discussions between the United States and Iran continued, including talks about the reopening of the Strait of Hormuz, a vital passage for the global oil and natural gas supply. U.S. futures also showed a slight increase, indicating a positive outlook for traders.

In Asia, stock indexes generally advanced, with Japan's Nikkei 225 climbing over 1.3% and surpassing the 67,000 mark for the first time, closing at 67,231.28. Notably, shares of SoftBank Group, which has a strong emphasis on AI investments, soared more than 9% after achieving record highs the previous week.

In South Korea, the Kospi index experienced a remarkable gain of nearly 5%, reaching an all-time high of 8,874.16. Major Korean company Samsung Electronics saw its shares rise by more than 9%. South Korea's recent official data revealed a 53% year-over-year surge in exports for May, largely thanks to robust global demand for semiconductors.

Over the past month, the Nikkei 225 has appreciated more than 12%, while the Kospi has skyrocketed over 27%. Hong Kong's Hang Seng index was also in the green, trading 0.9% higher at 25,408.96. Conversely, the Shanghai Composite index dipped slightly by 0.1% to 4,063.72, following a report indicating that Chinese factory activity softened, with diminishing demand for new exports.

Australia's S&P/ASX 200 experienced a marginal decline of 0.1%, settling at 8,720.30. Meanwhile, Taiwan’s Taiex rose by 1.4%, and India’s Sensex added a 0.6% increase. The ongoing uncertainties regarding a permanent conclusion to the Iran war have significantly influenced market dynamics, leading to fluctuations in oil prices despite the positive sentiment created by robust AI growth and strong corporate earnings, which fueled rallies in stock markets, including Wall Street.

Last Friday, U.S. President Donald Trump engaged in high-level discussions regarding a potential 60-day extension of the Iran war ceasefire; however, no definitive agreements were reached as Iran stated that discussions were still in progress. Furthermore, the reopening of the Strait of Hormuz remains uncertain, as the strait has faced closures and the U.S. has implemented a blockade on Iranian ports.

As a result, Brent crude oil, the international benchmark, saw a 2.4% rise early Monday, trading at $93.33 per barrel, compared to approximately $70 a barrel in late February when the conflict began. Benchmark U.S. crude increased by 2.8% to $89.76 per barrel.

On Wall Street, major indices reached new heights on Friday, bolstered by strong performances from technology stocks. The benchmark S&P 500 climbed 0.2%, marking its seventh consecutive gain to 7,580.06. The Dow Jones Industrial Average rose 0.7% to 51,032.46, while the Nasdaq composite, heavily weighted in technology, gained 0.2% to reach 26,972.62.

Noteworthy movements included Dell Technologies soaring 32.8% after surpassing earnings expectations and raising its outlook linked to heightened AI demand. In addition, Microsoft shares rose over 5.4%, while Broadcom experienced a price increase of 4.7%.

The U.S. dollar strengthened slightly, trading at 159.48 Japanese yen from the previous 159.25 yen, while the euro was down from $1.1667 to $1.1645. Overall, the conditions in Asian markets, energy sectors, and international relations will continue to shape market trends in the coming days.