Key Takeaways

• KOSPI explodes: South Korea’s index surged nearly 5% to a record high, leading Asia higher on chip-stock strength.
• SK Hynix soars 12%: The memory chip giant hit a record high, while Samsung Electronics rose nearly 6% — both fueled by AI-driven supply shortages.
• Trump-Xi summit confirmed: Chinese state media confirmed Trump will visit Beijing between May 13 and 15 — the first major U.S. presidential visit in nearly a decade.
• China stocks rally: CSI 300 and Shanghai Composite rose 1.2% and 0.7%, respectively, while Hang Seng dipped 0.4%.
• China inflation pickup: April CPI rose more than expected, while PPI surged to a near four-year high amid Middle East war import costs.
• U.S. futures cool: S&P 500 futures slipped 0.1% after Friday’s record highs, with U.S. CPI data due Tuesday.
• Iran deal rejected: Trump rejected Tehran’s response to the 14-point peace proposal over the weekend.
• Hormuz tensions surge: Renewed military action in the strait sent oil prices sharply higher Monday.
• Nintendo crashes: Japan’s Nikkei fell 0.4%, weighed by a 9% drop in Nintendo after disappointing earnings.
• CSL slashes guidance: Australia’s ASX 200 fell 0.7% on sharp losses in the biopharmaceutical giant.
• India cautious: Nifty 50 futures slid 1% as PM Modi warned of economic fallout from the conflict.
• Trade truce talks ahead: Trump-Xi summit expected to address tariffs, Taiwan, and possibly extend the October 2025 trade truce.

Most Asian stocks brushed past heightened tensions in the Middle East on Monday, with strong gains in chipmakers and optimism over an imminent U.S.-China summit helping markets weather a surge in oil prices.

Chinese stocks firmed after Beijing confirmed that a summit between President Xi Jinping and U.S. President Donald Trump will take place later in the week. Chinese inflation data also came in stronger than expected for April.

South Korea’s KOSPI was the standout performer in the region, surging nearly 5% to a record high on a sustained rally in chipmaking stocks.

S&P 500 futures fell 0.1% in Asian trading, cooling after Wall Street hit record highs on Friday. Focus is also on upcoming U.S. consumer price index inflation data, due on Tuesday.

The war in the Middle East showed few signs of cooling after U.S. President Donald Trump over the weekend rejected Iran’s response to a 14-point peace proposal.

The rejection came amid resurgent military action in the Strait of Hormuz, with oil prices rising sharply on Monday.

Chinese Stocks Rise Ahead of Trump-Xi Summit; April Inflation Upbeat

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 1.2% and 0.7%, respectively, on Monday. Hong Kong’s Hang Seng index slipped 0.4%.

Chinese state media confirmed that Trump and Xi will meet in Beijing between May 13 and 15. The summit marks the first major visit by a U.S. leader to the Chinese capital in nearly a decade.

Trump and Xi are expected to discuss trade tariffs, Taiwan, and potentially the war in the Middle East. The two leaders are also likely to extend the trade truce reached in October 2025.

Separately, Chinese government data showed that consumer price index inflation rose more than expected in April, while producer price index surged to a near four-year high. The increase was largely driven by higher import costs stemming from the war in the Middle East.

South Korea’s KOSPI Hits Record High on Chip Gains

South Korea’s KOSPI index surged nearly 5% to a record high on Monday, extending the sharp gains from last week.

The index’s strength was driven chiefly by chipmaking stocks, which extended their advance tracking strength in their U.S. peers.

SK Hynix Inc surged nearly 12%, while Samsung Electronics Co Ltd rose nearly 6%, with both stocks hitting record highs. The two have been on a sustained uptrend this year as outsized demand from the AI industry triggered a memory chip supply shortage that has driven prices sharply higher.

Broader Asia Mixed

Broader Asian stocks moved in a flat-to-slightly lower range.

Japan’s Nikkei 225 index fell 0.4%, weighed down by a near 9% drop in Nintendo Co Ltd after the videogame giant posted disappointing earnings and guidance.

Japan’s TOPIX index was flat.

Australia’s ASX 200 fell 0.7%, pressured chiefly by sharp losses in CSL Ltd after the biopharmaceutical giant unexpectedly slashed its annual guidance.

Singapore’s Straits Times index rose slightly.

Futures for India’s Nifty 50 index slid 1% in morning trade, signaling heightened caution toward Indian markets after Prime Minister Narendra Modi warned of the economic fallout from the Middle East conflict.

Indian markets are particularly sensitive to increases in oil prices, given the country’s heavy reliance on oil and gas imports from the Middle East.