Key Takeaways

• Nikkei hits record: Japan’s benchmark index surged as much as 3.3% to an all-time high of 65,408.87 points.
• TOPIX also records: The broader index climbed 1.6% to 3,953.89 — another all-time high.
• Chip stocks lead: Renesas Electronics and Rohm each surged 10% on AI and semiconductor momentum.
• Nasdaq futures up 1%+: U.S. investors continued rotating into AI and chip shares despite the U.S. market holiday.
• Broad Asia rally: Shanghai Composite rose 0.6%, CSI 300 gained 1%, ASX 200 added 0.5%, Singapore’s STI climbed 0.4%, and India’s Nifty 50 jumped 1%.
• Trump’s MOU claim: The president said an agreement to reopen the Strait of Hormuz had been “largely negotiated.”
• “No rush” caveat: Trump cautioned there was no urgency to finalize, keeping traders wary of sudden reversals.
• Oil crashes below $100: Brent crude dropped more than 4% on deal hopes — easing inflation fears that have dogged markets for months.
• Hong Kong and South Korea closed: Both markets observed public holidays on Monday.
• U.S. markets also shut: Wall Street closed for Memorial Day.
• Analysts still cautious: Markets remain sensitive to Iran headlines and global rate outlooks.

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Asian stocks climbed on Monday, with Japanese shares hitting record highs tracking Wall Street’s chipmaker gains, while a possible U.S.-Iran peace agreement boosted risk appetite.

Wall Street futures also strengthened during Asian hours, with Nasdaq futures rising more than 1% as investors continued rotating into artificial intelligence and semiconductor shares following upbeat earnings and guidance from U.S. chipmakers.

U.S. stock markets will remain closed on Monday for a public holiday.

Japan’s Nikkei and TOPIX Hit Record Highs

Japan’s benchmark Nikkei 225 jumped as much as 3.3% to a record high of 65,408.87 points.

Japan’s broader TOPIX index climbed as much as 1.6% to 3,953.89 points — also hitting an all-time high.

Gains were driven by chip-related stocks and AI-linked shares after gains in U.S. semiconductor companies late last week.

Japan’s Renesas Electronics Corp and Rohm Ltd each surged 10%.

Broader Asian equities also advanced. China’s Shanghai Composite rose 0.6%, while the Shanghai Shenzhen CSI 300 index advanced 1%.

Australia’s S&P/ASX 200 rose 0.5%, while Singapore’s Straits Times Index added 0.4%.

India’s Nifty 50 jumped 1% in early trade.

Markets in Hong Kong and South Korea were closed for holidays.

Investors Weigh Mixed Iran Peace Signals

Investor sentiment improved after U.S. President Donald Trump said a memorandum of understanding to reopen the Strait of Hormuz had been “largely negotiated,” raising hopes of easing tensions in the Middle East after months of conflict.

However, Trump later cautioned there was “no rush” to finalize an agreement — keeping traders wary of sudden reversals.

Oil prices fell sharply on expectations that a deal could restore smoother energy flows through the key shipping route.

Brent crude dropped more than 4% to below $100 a barrel, easing some of the inflation concerns that had pressured global equities in recent months.

Still, analysts said markets remained sensitive to headlines surrounding the Iran negotiations and the outlook for global interest rates, as elevated energy prices and persistent inflation pressures continued to cloud the economic outlook.