CANBERA (dpa-AFX) - Asian stock markets are trading mostly higher on Monday, following the broadly positive cues from Wall Street on Friday, amid optimism about a potential peace deal between the US and Iran to see a permanent end to the Middle East conflict after senior US officials indicated over the weekend that both countries were nearing an agreement that could reopen the Strait of Hormuz. Traders also look to cash in on recent gains. Asian markets closed mostly higher on Friday.
Both sides are reportedly still negotiating key terms of the peace deal, and final approval from both sides is expected to take several days. Secretary of State Marco Rubio claimed the U.S. and Iran have made 'some progress' in negotiations to end the war.
Though the peace proposal has narrowed some of the gaps between the two countries, one of the sticking points seems to be Iran's efforts to establish a tolling system for the Strait of Hormuz, which Rubio called 'unacceptable' and said 'would make a diplomatic deal unfeasible.'
The Australian stock market is slightly higher on Monday, extending the gains in the previous session, following the broadly positive cues from Wall Street on Friday. The benchmark S&P/ASX 200 index is moving well above the 8,650.00 level, with gains in mining stocks nearly offset by weakness in energy and technology stocks.
The benchmark S&P/ASX 200 Index is gaining 6.80 points or 0.08 percent to 8,663.80, after hitting a low of 8,644.70 and a high of 8,664.60 earlier. The broader All Ordinaries Index is up 8.30 points or 0.09 percent to 8,885.50. Australian stocks closed modestly higher on Friday.
Among the major miners, Fortescue, BHP Group and Rio Tinto are edging up 0.1 to 0.4 percent each, while Mineral Resources is gaining almost 2 percent.
Oil stocks are mostly loser. Beach energy and Santos are down more than 2 percent each, while Woodside Energy is declining almost 3 percent and Origin Energy is edging down 0.2 percent.
Among tech stocks, Afterpay owner Block is losing almost 1 percent and Appen is declining more than 3 percent, while Zip and WiseTech Global are down more than 1 percent each. Xero is gaining almost 1 percent.
Gold miners are mostly higher. Newmont, Genesis Minerals and Evolution Mining are gaining almost 4 percent each, while Resolute Mining and Northern Star Resources are surging almost 5 percent each.
Among the big four banks, Commonwealth Bank is edging down 0.4 percent, while ANZ Banking, Westpac and National Australia Bank are edging up 0.2 percent each.
In the currency market, the Aussie dollar is trading at $0.716 on Monday.
The Japanese stock market is trading sharply higher on Monday, extending the gains in the previous two sessions, following the broadly positive from Wall Street on Friday, with the Nikkei 225 surging 2.7 percent to above the 65,050 level, with gains across most sectors led by index heavyweights, automakers and technology stocks.
The benchmark Nikkei 225 Index closed the morning session at 65,142.81, up 1,803.74 points or 2.85 percent, after touching a high of 65,408.87 earlier. Japanese shares ended sharply higher on Friday.
Market heavyweight SoftBank Group is gaining more than 5 percent and Uniqlo operator Fast Retailing is gaining almost 1 percent. Among automakers, Honda is gaining almost 2 percent and Toyota is advancing almost 4 percent.
In the tech space, Advantest is surging more than 5 percent, while Screen Holdings and Tokyo Electron are advancing more than 3 percent each.
In the banking sector, Sumitomo Mitsui Financial is gaining almost 1 percent, while Mitsubishi UFJ Financial is edging down 0.5 percent and Mizuho Financial is losing more than 1 percent.
The major exporters are mostly higher. Mitsubishi Electric is gaining almost 3 percent, Panasonic is up almost 1 percent, Sony is adding more than 1 percent and Canon is edging up 0.4 percent.
Among the other major gainers, Taiyo Yuden is skyrocketing more than 16 percent, while Murata Manufacturing and Lasertec are jumping more than 10 percent each. Ibiden is soaring almost 9 percent, while Taisei and Yokohama Rubber are surging almost 8 percent each. Kawasaki Heavy Industries, Fujikura and Resonac Holdings are advancing more than 7 percent each. Sumco, Socionext and Renesas Electronics are advancing almost 7 percent each. Dowa Holdings, Mitsui Kinzoku and TDK are gaining more than 6 percent each.
Conversely, ARCHION is tumbling more than 8 percent, Rakuten Group is sliding more than 4 percent, and Pan Pacific International is slipping almost 4 percent, while Asahi Group, Toho and Aeon are declining more than 3 percent each. Terumo, CyberAgent, J. Front Retailing, LY and Kikkoman are losing almost 3 percent each.
In the currency market, the U.S. dollar is trading in the higher 158 yen-range on Monday.
Elsewhere in Asia, Taiwan is up 3.0 percent, while New Zealand, China, Singapore and Indonesia are higher by between 0.3 and 1.1 percent each. Malaysia is bucking the trend and is down 0.2 percent. South Korea and Hong Kong are closed for the Buddha's Birthday.
On Wall Street, stocks gave back some ground in the latter part of the trading day but still closed mostly higher after turning in a strong performance throughout much of the session on Friday. While the major averages pulled back well off their best levels of the day, the Dow still ended the session at a new record closing high.
The Dow advanced 294.04 points or 0.6 percent to 50,589.70, the S&P 500 climbed 27.75 points or 0.4 percent to 7,473.47 and the Nasdaq rose 50.87 points or 0.2 percent to 26,343.97.
The major European markets also moved to the upside on the day. While the German DAX Index jumped by 1.2 percent, the French CAC 40 Index climbed by 0.4 percent and the U.K.'s FTSE 100 Index rose by 0.2 percent.
Crude oil prices ticked higher on Friday as traders weighed concerns of an impending crude oil inventory shortage against the positive signals from U.S.-Iran peace talks. West Texas Intermediate crude for July delivery was up $0.10 or 0.10 percent at $96.45 per barrel.
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