Japan, South Korea stocks hit more records, as oil gains on Iran war
ending fragility
[June 01, 2026] By
CHAN HO-HIM
HONG KONG (AP) — Stock markets in Japan and South Korea hit fresh record
highs Monday on enthusiasm over the artificial intelligence boom and as
tensions between the U.S. and Iran grew again while investors await a
decision on extending the Iran war ceasefire.
Oil prices gained more than 3% as U.S.-Iran negotiations continued,
including on the reopening of the Strait of Hormuz, a key waterway for
global oil and natural gas transit. The U.S. military said Monday the
United States bombed Iranian military sites after Tehran shot down an
American drone.
U.S. futures edged higher.
Asian shares mostly advanced and Japan’s and South Korea’s benchmarks
hit records, led by technology-related stocks, as investors continued to
see growth in AI and other advanced technologies.
Tokyo’s Nikkei 225 ended 0.9% higher at an all-time record of 66,934.33.
It also crossed the 67,000 mark for the first time during Monday's
trading, reaching 67,231.28. Shares of SoftBank Group, the investment
company that focuses heavily on AI, soared 14% and became Japan's most
valuable listed company, surpassing Toyota.
In South Korea, the Kospi index jumped 3.7% to 8,788.38, also closing at
a record high, after hitting an intraday record of 8,874.16. Samsung
Electronics, its biggest company, was up 10.1%. Official data on Monday
showed that South Korea’s exports surged 53% year-on-year in May, buoyed
by global demand for semiconductors.
The Nikkei 225 was up more than 12% over the past month, while the Kospi
surged around 27% during the same period.
Hong Kong’s Hang Seng traded 0.8% higher at 25,389.54. The Shanghai
Composite index fell 0.3% to 4,057.74, after China reported over the
weekend that factory activity in May softened with signs of slowing new
exports demand.
Australia’s S&P/ASX 200 edged down less than 0.1% to 8,729.40.
Taiwan’s Taiex climbed 1.4%, while India's Sensex lost 0.2%.
Three months after the Iran war began, uncertainties over a permanent
end to the war are still driving market movements and keeping oil prices
swinging, even as optimism on robust AI demand and strong corporate
earnings have fueled a stock market rally including on Wall Street.
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A currency trader talks on the phone at the foreign exchange dealing
room of the Hana Bank headquarters in Seoul, South Korea, Monday,
June 1, 2026. (AP Photo/Ahn Young-joon)
 On Friday, U.S. President Donald
Trump met with advisers in high-level talks but had not decided yet
on a tentative plan to extend the Iran war ceasefire by 60 days,
while Iran had said a deal was not finalized. The reopening of the
Strait of Hormuz was also still in limbo. The strait has been
largely closed and the U.S. has imposed a sea blockade on Iranian
ports.
The Israeli army was also advancing in Lebanon as Israel targets the
Iran-backed Hezbollah militant group, further complicating
developments of a deal on the Iran war.
Brent crude oil, the international standard, rose 3.1% early Monday
to $93.95 per barrel. It was approximately $70 a barrel in late
February, before the start of the war.
Benchmark U.S. crude was 3.5% higher at $90.39 a barrel.
“In spite of another round of tit-for-tat attacks, market
participants continue to operate on the assumption that, sooner
rather than later, the Strait of Hormuz will re-open,” wrote Jonas
Goltermann, chief markets economist at Capital Economics.
On Friday, Wall Street stocks reached more records powered by big
technology stocks, with the benchmark S&P 500 adding 0.2% in its
seventh straight gain to 7,580.06.
The Dow Jones Industrial Average climbed 0.7% to 51,032.46, while
the technology-heavy Nasdaq composite gained 0.2% to 26,972.62.
Dell Technologies surged 32.8% following strong-than-expected
results and after it raised its outlook on strong AI-related demand.
Microsoft rose over 5.4%, while Broadcom was up 4.7%.
In other dealings, the U.S. dollar rose to 159.46 Japanese yen from
159.25 yen. The euro was trading at $1.1657, down from $1.1667.
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