Global Shares Mixed as Oil Prices Rise Amid Ongoing Middle East Tensions
Global shares were mixed on Monday, following gains on Wall Street, as oil prices increased due to ongoing tensions in the Middle East. In Asia, Japan's Nikkei 225 led advances with a 2.1% surge to 66,970.22.
Tokyo Electron jumped 4.1%, while Advantest rose 6.4%. The Kospi in South Korea added 0.7% to 6,299.66 as shares in major chipmakers slipped. Samsung Electronics lost 0.4%, while SK Hynix fell 0.1%.
Analysts attributed the decline of Big Tech stocks to foreign investors locking in profits and rebalancing holdings into other industries, such as defense contractors. Hong Kong's Hang Seng rose 1.1% to 25,937.49, while the Shanghai Composite index picked up 0.7% to 3,966.59.
Oil prices increased after Israel rejected a deal announced by U.S. President Donald Trump for Gaza, and details emerged on the potential agreement between Iran and Oman regarding the Strait of Hormuz. The Houthi rebels' strike on a Yemen port deepened fears over threats to strategic shipping routes and a potential return to civil war.
Brent crude rose 0.8% to $84.23 per barrel, while U.S. benchmark crude advanced 0.7% to $78.72 per barrel. Negotiators said that a deal to establish a safe shipping route was close, but Iran may now be exploring how much it can extract from the U.S.