Asian Shares Advance On Optimism Over US-Iran Peace Talks

(RTTNews) - Asian stocks advanced on Monday as hopes for a U.S.-Iran peace deal sent oil prices sharply lower and eased inflationary concerns.

Hopes for a potential deal to end a nearly three-month-long Iran war grew after reports suggested that the U.S. and Iran are working toward a deal to extend their fragile ceasefire by 60 days and reopen the Strait of Hormuz.

Despite signs of progress in talks, the two sides remain at odds over key issues, including blockades on the critical waterway, Tehran's nuclear program and the release of a $12 billion frozen assets held in Qatar.

According to a statement released on Sunday, the Islamic Revolutionary Guard Corps (IRGC) announced that 33 commercial vehicles and oil tankers passed through the Strait of Hormuz over the past 24 hours under the coordination and security supervision of the IRGC Navy.

The dollar hovered near a one-week low in Asian trade, helping gold prices rise over 1 percent to $4,560 an ounce.

Both Brent and WTI crude prices fell more than 4 percent amid expectations that a potential U.S.-Iran peace deal could restore smoother energy flows through the key shipping route.

Markets in Hong Kong and South Korea were closed for holidays. China's Shanghai Composite index surged 0.96 percent to 4,152.57 on hopes of easing tensions in the Middle East after months of conflict.

Coal stocks rose after the worst mining disaster in 17 years sparked fears of increased scrutiny and broader supply disruptions. Brokerage shares were also in the spotlight following China's crackdown on cross-border stock trading.

Japanese markets extended last week's gains to reach a new record high, with chip and AI-related stocks leading the surge.

The Nikkei average jumped 2.87 percent to 65,158.19 while the broader Topix index settled 1.29 percent higher at 3,942.57. While SoftBank shares rallied 4.6 percent, Lasertec, Fujikura and Taiyo Yuden soared 13-16 percent.

Renesas Electronics rose 6.3 percent and Rohm added 9.5 percent after gains in U.S. semiconductor companies late last week.

Australian markets eked out modest gains to hit a two-week high on hopes for a deal to end the U.S.-Iran conflict. Mining stocks surged, offsetting weakness in the energy sector after a sharp drop in oil prices.

The benchmark S&P/ASX 200 rose 0.40 percent to 8,692, marking its highest close since May 11. The broader All Ordinaries index closed 0.43 percent higher at 8,915.40.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index slipped 0.16 percent to 12,970.28, erasing gains from the previous two sessions.

U.S. stocks eked out modest gains on Friday as Treasury yields eased amid signs of progress in talks to end the U.S.-Iran war.

Secretary of State Marco Rubio claimed the U.S. and Iran have made "some progress" in negotiations to end the war but cautioned he doesn't want to be "overly optimistic".

Rubio said that Iran imposing tolls for transit in the Strait of Hormuz is "unacceptable" and "would make a diplomatic deal unfeasible," adding President Trump has "other options" if the U.S. and Iran can't get a "good deal."

Traders largely shrugged off new data that showed U.S. consumer sentiment tumbled to a fresh record low in May, and long-inflation expectations worsened notably as a result of elevated oil prices.

While the Dow surged 0.6 percent to reach a new record closing high, the S&P 500 and the tech-heavy Nasdaq Composite gained 0.4 percent and 0.2 percent, respectively.