Asian Markets Advance Despite Escalating US-Iran Tensions and Oil Spike

Asian stock markets ended the session mostly in the green on Monday, navigating a complex landscape of record-setting US momentum and renewed instability in the Middle East. While indices rose, the gains remained modest as investors weighed diplomatic failures against strong corporate performance in the tech sector. The positive sentiment was countered by a sharp escalation in tensions between Washington and Tehran. Iran officially rejected a second round of diplomatic negotiations, citing unrealistic US demands and the ongoing naval blockade. The situation worsened after the US forcibly seized an Iranian-flagged cargo ship, prompting Tehran to vow retaliation. This geopolitical friction drove Brent crude prices up nearly 6% to approach $96 per barrel. Simultaneously, the US dollar climbed to a one-week high, which pressured gold prices, sending the precious metal down approximately 1% to below $4,800 per ounce. In China, the Shanghai Composite rose 0.76% to 4,082.13 after the People's Bank of China maintained benchmark lending rates for the eleventh straight month. Hong Kong's Hang Seng index gained 0.79%, bolstered by a 2.6% jump in Tencent Holdings on AI positioning expectations. Japan's Nikkei rose 0.60% to 58,824.89, with SoftBank surging 5.5% following the introduction of an AI-focused smartphone. South Korea's Kospi climbed 0.44%, led by SK Hynix, which rose 3.4% ahead of its upcoming earnings release. However, Australian markets faced headwinds; National Australia Bank shares tumbled 3.6% as the lender warned that credit impairment charges could double in the first half as a direct result of the conflict in Iran.