Record Highs for Japanese and South Korean Markets Amid AI Enthusiasm
Stock markets in Japan and South Korea reached new all-time highs driven by optimism surrounding artificial intelligence advancements, even as tensions between the U.S. and Iran persisted.
Stock markets in Japan and South Korea reached unprecedented levels on Monday, propelled by optimism related to the growth of artificial intelligence technologies. Japan's Nikkei 225 index closed at an all-time high of 66,934.33, with intraday trading peaking at 67,231.28. Shares of SoftBank Group, heavily invested in AI innovations, surged 14%, making it Japan's most valuable company, surpassing Toyota.
In South Korea, the Kospi index rose 3.7% to close at a record high of 8,788.38, having touched an intraday peak of 8,874.16. The index was bolstered by a 10.1% rise in Samsung Electronics, following a report that South Korea's exports had increased 53% year-on-year in May, driven by strong global demand for semiconductors.
Overall, the Nikkei has increased by more than 12% in the past month, while the Kospi has surged approximately 27%. Meanwhile, oil prices also saw significant gains, with Brent crude rising 3.1% to $93.95 a barrel amid ongoing U.S.-Iran negotiations, which have included discussions about reopening the strategically vital Strait of Hormuz.
Market dynamics were also influenced by persistent tensions in the region, particularly with the U.S. military's recent actions against Iranian military sites following the downing of an American drone by Iran. Investors are awaiting a decision regarding the potential extension of a ceasefire in the ongoing conflict, which remains uncertain.
In other Asian markets, Hong Kong’s Hang Seng index rose 0.8%, while the Shanghai Composite index fell 0.3%.