Asian Shares Mostly Higher On AI Optimism

(RTTNews) - Asian stocks ended mostly higher on Monday as expectations for continued demand for semiconductors and AI-related gear offset lingering uncertainty over a possible ceasefire extension in the Middle East.

In partnership with Microsoft, Nvidia today unveiled its long-rumored RTX Spark N1X ARM processor, set to revolutionize personal computing and challenge Intel and AMD's dominance.

Nvidia CEO Jensen Huang claimed this development is the most significant change in PCs in 40 years.

The dollar held steady in Asian trade while gold slipped towards $4,500 an ounce ahead of speeches from several Federal Reserve officials and key U.S. manufacturing and May payrolls report due this week.

Brent crude futures jumped more than 3 percent toward $94 a barrel amid a renewed exchange of military strikes between the United States and Iran.

The U.S. said it conducted "self-defense strikes" on radar and command sides in Iran over the weekend.

Iran's Islamic Revolutionary Guard Corps (IRGC) said it targeted an airbase allegedly used in a U.S. attack on a telecommunications tower on Sirik Island in southern Hormozgan province.

China's Shanghai Composite index dropped 0.27 percent to 4,057.74 on concerns over an economic slowdown after official data pointed to weakening momentum in the country's manufacturing sector in May. A private gauge showed continued growth in manufacturing during the month, but at a softer pace.

Hong Kong's Hang Seng index jumped 0.86 percent to 25,398.18, led by gains in technology shares.

Japanese markets surged, led by AI-related shares. The Nikkei average crossed 67,000 for the first time before closing up 0.91 percent at 66,934.33. The broader Topix index settled 0.42 percent lower at 3,940.70.

SoftBank Group shares soared 14 percent to a record, pushing its valuation to a peak of 48 trillion yen.

The yen remained under pressure to hover near the closely watched 160 level as data showed Japan's biggest companies reduced capital spending in the first quarter.

Bond yields reached their highest level in 40 years following reports that the Japanese government is compiling a supplementary budget of around 3 trillion yen, or about $19 billion, to help households with the cost of living.

Seoul stocks rallied to reach a new peak, lifted by buying in chip stocks tied to artificial intelligence demand. The Kospi index soared 3.68 percent to 8,788.38 on extended tech rally, with Samsung Electronics rallying over 10 percent to a record high and SK Hynix climbing 1.3 percent.

Government data showed earlier in the day that Korea's exports surged 53 percent from a year earlier to a new monthly high of $87.8 billion in May, driven by the semiconductor supercycle.

Australian markets ended on a flat note ahead of April GDP data due on Wednesday and amid uncertainty over ongoing ceasefire negotiations between the Unted States and Iran.

Banks, healthcare and energy stocks led losses, offsetting gains in technology and mining stocks.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index edged up by 0.29 percent to 13,244.55.

U.S. stocks fluctuated before closing at new record highs on Friday as Dell raised its full-year guidance and President Trump said he would make a "final determination" on a preliminary deal to extend a ceasefire with Iran, reiterating that Iran "will never have a nuclear weapon or bomb" and the Strait of Hormuz must be open with no tolls and any mines destroyed or removed.

The Dow climbed 0.7 percent, while the tech-heavy Nasdaq Composite and the S&P 500 both gained around 0.2 percent.