Asian Stocks Rebound as Oil Prices Plunge Amid US-Iran Ceasefire

Asian stocks rebounded on Monday after a pause in hostilities between the US and Iran relieved oil price pressures, leading to a decline of over 5% in Brent crude.

The sudden respite from tensions sent shares mostly higher across Asia, with Japan's Nikkei 225 rising 0.5%, South Korea's Kospi advancing 1%, and Hong Kong's Hang Seng climbing 1.1%

However, the main driver of Monday's gains was the Shanghai debut of Chinese memory chipmaker CXMT, which surged over 470% to become China's most valuable listed company with a market capitalization of nearly $490 billion.

The company's impressive opening day saw its shares jump to an estimated value of 3.3 trillion yuan (nearly $490 billion), according to SPI Asset Management's Stephen Innes, who noted that oil's sharp retreat 'loosened the geopolitical knot' that had been tightening around equities and currencies.

Meanwhile, corporate earnings reports are focusing attention on the sustainability of profits from a boom in spending on artificial intelligence, with tech giants like Alphabet and Nvidia facing questions about whether they will generate enough profit to justify their massive stock values.