Asian stock markets opened the week on a positive note, on Monday April 27, with major indices in Japan and South Korea reaching all-time highs. The rally followed strong momentum from U.S. equities, where the Nasdaq Composite and S&P 500 recently closed at record levels, boosting confidence in technology and AI-related sectors across the region. However, rising oil prices and unresolved geopolitical tensions, particularly between the U.S. and Iran, tempered broader market optimism. Meanwhile, U.S. stock futures remained largely unchanged during Monday’s Asian trading session.

KOSPI and Nikkei Hit Fresh Highs on Semiconductor Strength

South Korea’s KOSPI surged 2.3% to reach a new peak, driven largely by strong performance in semiconductor stocks. Shares of SK Hynix climbed more than 6% to a record high, while Samsung Electronics gained 2.5%. The index has risen nearly 5% over the past week, supported by solid chip earnings and continued enthusiasm around artificial intelligence developments.

Japan’s Nikkei 225 also advanced, rising up to 1.6% to a record level. The broader TOPIX posted a more modest gain of 0.7%. Investors are now closely watching the upcoming policy decision from the Bank of Japan, which is expected to maintain its benchmark interest rate at 0.75%. Market participants are particularly focused on forward guidance, as the central bank may hint at a potential rate hike in the coming months amid persistent inflation pressures.

Oil Prices Climb as US-Iran Talks Stall

Despite strong equity performance, market sentiment remained cautious due to escalating oil prices. Brent crude oil hovered above $107 per barrel, driven by supply concerns linked to stalled negotiations between Washington and Tehran. Ongoing disruptions in the Strait of Hormuz, a critical passage for global energy supply, have intensified worries about reduced oil flows.

Adding to the uncertainty, Donald Trump canceled a planned diplomatic initiative aimed at reviving talks with Iran, signaling continued deadlock in negotiations.

Mixed Performance Across the Rest of Asia

Elsewhere in the region, markets showed a more subdued performance. China’s Shanghai Composite and Hong Kong’s Hang Seng Index remained largely flat. Singapore’s Straits Times Index declined 0.5%, while Australia’s S&P/ASX 200 edged down slightly by 0.2%. Meanwhile, futures for India’s Nifty 50 posted a modest 0.1% gain.

What Investors Are Watching Next

Looking ahead, investors are turning their attention to key global developments, including the upcoming Federal Reserve policy decision and a wave of earnings reports from major U.S. tech companies such as Alphabet Inc., Microsoft, Amazon, Meta Platforms, and Apple. These events are expected to play a crucial role in shaping global market direction in the coming days.