Asian markets advanced on Monday, following a record close on Wall Street, as hopes for a diplomatic breakthrough in the seven-week Middle East conflict continued to buoy investor sentiment. Despite Tehran’s announcement that it does not plan to attend upcoming peace talks, gains were recorded across Tokyo, Hong Kong, Seoul, Shanghai, Sydney, Singapore, Mumbai, Wellington, and Manila.
The rally was supported by a resurgence in technology stocks, echoing the sector-led gains that had characterised global markets before the escalation of hostilities on February 28. In contrast, European markets in London, Paris, and Frankfurt slipped into negative territory.
The dollar strengthened against major currencies after a sharp decline on Friday, reflecting its status as a safe-haven asset during the crisis. Analysts noted that traders were weighing the prospects of salvaging a ceasefire through this week’s diplomatic negotiations, with some viewing recent hawkish rhetoric from Washington as a negotiating tactic rather than a signal of imminent military escalation.
US President Donald Trump said negotiations with Iran were “very close” to a deal, insisting there were “no sticking points.” However, Tehran rejected the transfer of its enriched uranium stockpile and cited the continued US blockade of its ports as a precondition for talks. Iran’s Revolutionary Guards warned that any unauthorised movement through the Strait of Hormuz would be treated as cooperation with the enemy.
Only one round of talks has so far been held, a 21-hour session in Islamabad on April 11 that ended without a formal agreement. Preparations for further negotiations continue, but the path to a comprehensive accord remains fragile.
Oil prices rebounded sharply, with Brent crude up 6.2 per cent at $95.96 a barrel and West Texas Intermediate climbing 6.5 per cent to $89.27, reflecting renewed concerns over supply disruptions.
The developments underscore the volatility of the situation and the market’s sensitivity to geopolitical signals, with investors closely watching for any shift in the diplomatic trajectory.
