Asian Shares Rise As US-Iran Diplomacy Gains Momentum

(RTTNews) - Asian stocks rose broadly on Monday as oil extended declines on hopes of a diplomatic path to de-escalate the U.S.-Iran war. Regional volumes were thin as Japanese markets remained closed for a three-day holiday weekend ending September 23.

The U.S. dollar index held steady in Asian trade while gold traded around half a percent lower at $4,351 an ounce due to expectations for additional Fed rate hikes.

Brent crude prices fell more than 2 percent to trade below $102 a barrel, extending losses for a fourth day ahead of this week's meeting between U.S. President Donald Trump and Gulf-state leaders on the sidelines of the United Nations General Assembly.

Ahead of the talks, Trump warned Iran that it would fail economically or face its leadership being wiped out if it didn't make a deal.

Trump indicated potential for a meeting with Iranian President Masoud Pezeshkian in New York, adding that very big things could happen soon and he is in a "deciding mode" on military action, continued economic pressure or a deal.

China's Shanghai Composite index climbed 0.97 percent to 3,949.91 after U.S. and Chinese officials offered upbeat assessments of their talks.

Ahead of the Trump-Xi meeting later this week, U.S. Treasury Secretary Scott Bessent touted a "very successful" meeting on trade, artificial intelligence and investment. Earlier today, the People's Bank of China held its benchmark lending rates unchanged for the 16th straight month, meeting market expectations.

Hong Kong's Hang Seng index ended 1.18 percent higher at 25,042.71, led by technology and healthcare stocks.

Shares of Chinese biopharma companies like Innovent Biologics and Akeso soared following reports that the U.S. is working on new regulations for pharmaceutical companies investing in China.

Seoul stocks rallied as investors scooped up semiconductor shares on improving investor sentiment toward artificial intelligence. The Kospi index climbed 1.65 percent to 7,007.72.

Market bellwether Samsung Electronics jumped 5 percent and SK Square, the parent company of chip rival SK Hynix, surged 4.5 percent on expectations of continued strong demand.

Australian markets recovered from an early slide to end on a flat note ahead of key unemployment data and the RBA interest-rate decision. Banks gained ground, offsetting losses in commodity-related stocks.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index surged 0.60 percent to 13,821.20, erasing morning losses.

U.S. stocks ended mixed on Friday as oil prices swung, a measure of industrial production unexpectedly held steady in August, and benchmark Treasury yields topped 5 percent amid uncertainty over the Federal Reserve's rate path.

The tech-heavy Nasdaq Composite rose 0.4 percent and the S&P 500 edged up 0.2 percent while the narrower Dow slipped 0.2 percent.