Asian Shares Rise Despite Mideast Tensions

(RTTNews) - Asian stocks ended mostly higher on Monday, even as regional gains remained modest somewhat amid uncertainty surrounding the second round of diplomatic talks between the United States and Iran.

Hours after U.S. President Donald Trump announced delegation to Islamabad, Iran rejected participation in a second round of peace talks, citing Washinton's excessive demands, unrealistic expectations, constant shifts in stance, repeated contradictions, and the continuing naval blockade, which it considers a breach of the ceasefire.

The dollar firmed to a one-week high in Asian trade, sending gold prices down about 1 percent to below $4,800 an ounce.

Brent crude prices soared nearly 6 percent toward $96 a barrel after the U.S. forcibly seized an Iranian-flagged cargo ship and Tehran vowed to retaliate.

China's Shanghai Composite index surged 0.76 percent to 4,082.13 as the People's Bank of China kept its benchmark lending rates unchanged for an eleventh straight month, in line with market expectations.

Hong Kong's Hang Seng index jumped 0.79 percent to 26,366.68, led by technology stocks. Tencent Holdings rallied 2.6 percent on expectations that Hunyuan 3.0 and WeChat AI agents will help consolidate its AI positioning.

Japanese markets advanced after record-setting gains on Wall Street last week. The Nikkei average rose by 0.60 percent to 58,824.89 while the broader Topix index settled 0.43 percent higher at 3,777.02.

SoftBank Group soared 5.5 percent after introducing an AI-focused smartphone in Japan.

Seoul stocks ended higher despite renewed Middle East tensions and caution ahead of the upcoming earnings season. The Kospi average closed up 0.44 percent at 6,219.09.

Chip giant SK Hynix climbed 3.4 percent ahead of its earnings release due this week. Australian markets recovered from an early slide to end on a flat note. National Australia Bank shares tumbled 3.6 percent after the country's largest business lender said it expects credit impairment charges to double in the first half as a result of the Iran war.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index finished marginally higher at 12,915.45 in a volatile day of trading.

U.S. stocks rose sharply on Friday, racing to another record as crude oil prices plummeted by more than 10 percent to levels seen in the early days of the Iran war amid easing geopolitical tensions.

The S&P 500 gained 1.2 percent to close above 7,100 for the first time after Iran said the Strait of Hormuz is open again for commercial traffic on the heels of the 10-day ceasefire between Israel and Lebanon.

However, President Trump said the U.S. will continue its blockade of Iranian ports until a final peace agreement is reached.

The Dow rallied 1.8 percent to reach its best closing level in almost two months and the tech-heavy Nasdaq Composite advanced 1.5 percent.