Asia Markets Hit Record Highs as Japan and South Korea Stocks Surge Despite U.S.-Iran Tension Standoff

Asia-Pacific stock markets mostly climbed on Monday, with Japan and South Korea leading the charge as investors appeared largely unfazed by renewed diplomatic tensions between the United States and Iran. Despite growing geopolitical uncertainty, sentiment across the region remained surprisingly strong.

Japan’s Nikkei 225 soared 1.38% to close at a fresh record of 60,537.36, while South Korea’s Kospi also posted a historic gain, jumping 2.15% to end at 6,615.03. The rally reflected investor confidence in regional equities, even as global risks continued to build.

Elsewhere in the region, Australia’s S&P/ASX 200 slipped 0.23%, while Hong Kong’s Hang Seng Index edged lower by 0.24%. Mainland China’s CSI 300 ended nearly flat, despite data showing industrial profits surged 15.8% in March, signaling resilience in parts of the world’s second-largest economy.

Market optimism came even as diplomatic progress between Washington and Tehran stalled. Reports suggest Iran has floated a new proposal involving the reopening of the Strait of Hormuz and delaying nuclear talks, though uncertainty remains high after U.S. political tensions disrupted planned negotiations.

Oil markets reacted sharply to the geopolitical strain, with Brent crude rising more than 2% to $107.49 per barrel and U.S. crude climbing to $96.19. The surge followed renewed concerns over security in the Strait of Hormuz, a critical global shipping route, after reports of Iranian naval activity near cargo vessels. U.S. stock futures also dipped slightly as investors weighed global risks against recent record highs on Wall Street.