Asian stocks rose on Monday, supported by modest gains in technology shares, although broader sentiment remained cautious amid escalating tensions between the U.S. and Iran.
U.S. stock futures fell in Asian trading hours on Monday, after record-setting gains on Wall Street last week.
Traders shrug off US-Iran fears, tech supports advance
Investor sentiment was restrained by sharp geopolitical developments over the weekend.
U.S. forces seized an Iranian-flagged cargo ship in the Gulf of Oman after it reportedly attempted to breach a naval blockade.
The move followed increasingly aggressive rhetoric from U.S. President Donald Trump, who warned of potential strikes on Iranian infrastructure if a deal was not reached.
Technology stocks provided some support across the region, tracking last week’s record-setting gains on Wall Street, where the S&P 500 and Nasdaq Composite closed at all-time highs.
Traders also appeared to shrug off fears around Trump’s threats, given his track record of abrupt policy shifts, which have in the past triggered sharp moves across global assets.
Japan’s Nikkei 225 climbed 1%, while the broader TOPIX index rose 0.7%.
South Korea's KOSPIadvanced 1.1%, with chipmaker SK Hynix (KS:000660) jumping more than 3% after it said it would begin production of its SOCAMM2 server module designed for Nvidia’s next-generation Vera Rubin chips.
China keeps LPR steady for 11th straight month
In China, the People's Bank of China kept its benchmark loan prime rates unchanged for an 11th straight month.
The one-year LPR was held at 3.00%, while the five-year rate remained at 3.50%, in line with expectations, signalling a cautious policy stance amid steady economic recovery.
China's Shanghai Composite index rose 0.8%, while the blue-chip Shanghai Shenzhen CSI 300 edged up 0.7%.
Hong Kong's Hang Seng gained nearly 1%.
Higher energy prices capped gains across the region, particularly for oil-importing economies, and revived concerns over inflation. The renewed tensions contributed to a surge in oil prices, following the closure of the Strait of Hormuz.
Futures tied to India's Nifty 50 index fell 1%.
Singapore's Straits Times Index edged 0.2% higher while Australia's S&P/ASX 200 traded largely flat.
Source: Investing