South Korea's Kospi index reached a historic high on Tuesday following the resumption of trading after a public holiday. Investor sentiment was bolstered by expectations of a potential breakthrough in peace negotiations between the United States and Iran.
U.S. President Donald Trump stated on Monday that talks with Iran were "progressing well," but he cautioned that the U.S. might resume strikes if the negotiations fail.
Following these remarks, oil prices showed divergent movements. As of 2:41 a.m. Eastern Time, the international benchmark Brent crude July futures contract rose by 2.09% to $98.15 per barrel. In contrast, the WTI July futures contract fell by 5.13% to $91.64 per barrel, compared to its closing price last Friday. It was reported that there was no settlement price for WTI crude on Monday due to the U.S. Memorial Day holiday.
Highlighting the fragile and unstable nature of U.S.-Iran relations, the U.S. Central Command conducted "defensive strikes" on missile launch sites in southern Iran and vessels attempting to lay mines.
Meanwhile, a former director of the U.S. Central Intelligence Agency noted in an interview with reporters at the UBS Asian Investment Conference on Monday that Tehran appeared to be "backing down" on issues related to the Strait of Hormuz.
The Kospi closed up 2.55% at 8,047.51 points, after briefly touching a record intraday high of 8,131.15 points. South Korea's tech-heavy Kosdaq index saw its gains narrow, ultimately closing 0.98% higher.
In Japan, the Nikkei 225 index fell 0.25% to close at 64,996.09 points on Tuesday, influenced by some profit-taking activities. The Topix index also edged lower, closing at 3,938.46 points. Trading in Asian markets was subdued on Monday due to holidays in some regions, with the Nikkei 225 index briefly surpassing the 65,000-point mark for the first time during the session. It was reported that a deputy governor of the Bank of Japan stated that the central bank is still considering the timing for interest rate hikes while closely monitoring developments in the Middle East.
Australia's S&P/ASX 200 index declined by 0.39% to close at 8,657.80 points.
Indian markets experienced volatility, with both the Nifty 50 and Sensex indices ending the day flat.