Asian technology stocks advanced broadly on Monday, fueled by sustained enthusiasm for artificial intelligence investments driving capital inflows. South Korea's KOSPI index extended gains to 3%, Japan's Nikkei 225 surpassed the 67,000-point mark for the first time, and Taiwan's Weighted Index also hit a new record high, with regional markets collectively reaching unprecedented levels.
The South Korean market led the gains, with the KOSPI index's increase widening to 3% at one point. Samsung Electronics Co., Ltd. surged 7.7% in a single day, reaching an all-time high and serving as the primary catalyst for the KOSPI's rise.
In Japan, SoftBank Group climbed over 6%, with its market capitalization briefly surpassing that of Toyota Motor during the session. The Nikkei 225 index saw its intraday gains expand to 1%.
Taiwan's stock market also rose over 1.7% in early trading to 45,533.53 points, again refreshing its intraday historical high.
This rally unfolded against a complex global backdrop—progress in U.S.-Iran ceasefire negotiations remained slow, oil prices rebounded, and Middle East tensions stayed elevated. However, the ongoing fervor around AI trading provided robust support, with Asian equities overall gaining about 0.3%, hovering near historical highs.
AI Enthusiasm Drives Markets, South Korean Stocks Top Global Performance
The South Korean market has long been viewed as a barometer for AI-related investments. The KOSPI's year-to-date performance has placed it among the top global markets, and the new all-time high for Samsung Electronics Co., Ltd. further solidifies optimistic expectations for the semiconductor and AI supply chain.
Nasdaq 100 futures also rose 0.4% in sync. Last Friday, major Wall Street indices closed at record highs, partly supported by continued AI trading enthusiasm and optimistic sentiment regarding a potential U.S.-Iran ceasefire agreement.
SoftBank Group's strong performance similarly reflects the market's pursuit of AI concepts. Its brief intraday market cap overtaking Toyota Motor highlights the premium pricing capital markets are assigning to technology and AI investment targets.
Oil Price Rebound Amid Uncertain U.S.-Iran Negotiation Outlook
Beyond the AI-driven stock market optimism, energy market movements pose a potential constraint. Brent crude rebounded above $93 per barrel on Monday, after having fallen to its lowest closing level since mid-April. Following crude oil's largest monthly drop in over six years, this rebound has prompted markets to reassess the threat of energy inflation risks to the global bond market recovery.
Over the past weekend, an Iranian ballistic missile struck an airbase in Kuwait, causing minor injuries to several U.S. personnel; Israel also intensified military pressure on Hezbollah in Lebanon. Meanwhile, the U.S. and Iran continued to exchange revised drafts of an agreement to extend the ceasefire and reopen the Strait of Hormuz, but whether negotiations will achieve substantive progress remains unclear.
Kyle Rodda, a senior analyst at Capital.com, stated, "The U.S.-Iran negotiations remain a core uncertainty for the market and a source of potential future volatility. The risk is that prices may have been misled by the Trump administration's statements that a 'deal is imminent,' while Iran has remained cautious so far."
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