Asian stock markets opened with gains on Monday as oil prices tumbled more than 5 percent following comments from President Donald Trump suggesting that negotiations with Iran were moving forward. Japan's Nikkei 225 index surged past 65,000 for the first time, reaching a record 65,408.87 in holiday-thinned trading, while Taiwan's Taiex also climbed to an all-time high above 43,000.
Trump posted on Truth Social that talks with Iran were "proceeding in an orderly and constructive manner," and he instructed his representatives "not to rush into a deal in that time is on [their] side." The remarks came after the Trump administration had imposed a blockade on Iranian ports, prompting Tehran to close the Strait of Hormuz, a vital waterway for global energy shipments.
West Texas Intermediate crude futures for July fell 5.87 percent to $90.93 per barrel in early Asia trade, while Brent crude futures dropped 5.58 percent to $97.76. The decline in energy prices eased concerns that had built up after the Hormuz closure and helped lift investor sentiment across the region.
Japan's Topix index added 1.19 percent, and Australia's S&P/ASX 200 rose 0.45 percent. China's CSI 300 gained 0.91 percent, and India's Nifty 50 advanced 1.09 percent. Markets in Hong Kong and South Korea remained closed for public holidays, and U.S. exchanges were also shut for Memorial Day.
Taiwan's Taiex finished the session 2.91 percent higher at 43,495.92 after crossing the 43,000 threshold. The move marked another milestone for the island's technology-heavy benchmark, which has benefited from strong demand for semiconductors and related exports.
Friday's session on Wall Street had already shown resilience, with the Dow Jones Industrial Average climbing 294.04 points, or 0.58 percent, to close at 50,579.70. The blue-chip index touched an intraday record before settling at a new high. The S&P 500 rose 0.37 percent to 7,473.47, and the Nasdaq Composite gained 0.19 percent to finish at 26,343.97.
Traders said the combination of lower oil prices and signs of diplomatic progress helped offset worries about supply disruptions that had pushed energy costs sharply higher in recent weeks. Several regional fund managers noted that the reopening of the Strait of Hormuz, if confirmed, could further stabilize global energy markets.
According to the CNBC report, the Nikkei breach of 65,000 came amid thin holiday volume, with many participants watching developments in the Middle East closely. Analysts pointed out that any sustained drop in oil prices would likely support broader equity valuations by reducing input costs for manufacturers and transportation companies.
Background on the Hormuz situation traces back to the U.S. blockade of Iranian ports, which Tehran countered by restricting passage through the narrow waterway. The strait handles roughly one-fifth of global oil shipments, making its status a key factor in price calculations worldwide.
Market participants will monitor further statements from the White House and Iranian officials in the coming days. Any concrete agreement on reopening the strait could lead to additional declines in crude prices and continued support for risk assets across Asia and beyond.
Regional currencies also moved in response to the developments, with the yen weakening slightly against the dollar as investors shifted toward higher-yielding assets. Bond yields in Japan edged higher as equity demand increased.
Looking ahead, investors are awaiting the resumption of trading in closed markets on Tuesday and any updates on U.S.-Iran talks. The week's economic calendar includes several regional inflation readings that could influence central bank policy expectations.