AI Stocks Offset US-Iran Negotiation Concerns; Japan and Korea Markets Hit Record Highs

A surge in artificial intelligence (AI) concept stocks helped offset uncertainties surrounding US-Iran negotiations, leading to mixed results in Asian stock markets. However, Japan and South Korea performed strongly, with both the Nikkei 225 and the Korea Composite Stock Price Index (KOSPI) closing at record highs. AFP reported that despite the uncertainty of US-Iran negotiations, markets with high weightings in technology stocks rose, boosting investor optimism. Iran's chief negotiator warned yesterday that Tehran would not trust Washington or agree to any deal unless Iran's rights are fully guaranteed, highlighting the deep divisions and lack of progress. Reports also suggest that US President Donald Trump has returned with a tougher proposal, potentially complicating negotiations and delaying a final agreement or the reopening of the Strait of Hormuz. Across Asia, driven by strong demand for chipmakers and AI-related firms, the Seoul market led the gains, closing up 3.68% at a record high of 8,788.38 points. The Nikkei 225 rose 0.91%, also hitting a record high of 66,934.33 points. Taipei, Hong Kong, Manila, Wellington, and Singapore also closed higher. Due to cautious sentiment regarding China's economic outlook, the Shanghai market closed lower, as did Sydney and Kuala Lumpur. Analysts noted that despite geopolitical uncertainties, the market remains resilient, indicating that the AI-driven investment cycle remains dominant.