Japan’s Nikkei surges past 72,000 for first time amid AI and diplomatic optimism

Asian Markets Rally as US-Iran Peace Talks Show Progress

Asian equity markets climbed on Monday as Iranian negotiators and mediators reported progress in peace talks with the United States in Switzerland, helping reverse early-session jitters over the renewed closure of the Strait of Hormuz.

Nikkei Hits Record, KOSPI Rebounds

Japan’s Nikkei 225 surged past the 72,000 mark for the first time, advancing 1.4% to a record intraday high, fueled by a combination of diplomatic optimism and persistent enthusiasm for artificial intelligence investments. The broader Topix gained 1.1%.thestar

South Korea’s Kospi opened sharply lower — falling more than 1% at the start — but reversed course during the morning session, reclaiming the 9,200 level and trading up roughly 2% by midmorning as domestic institutional and retail investors bought aggressively into semiconductor heavyweights including Samsung and SK hynix.chosun

Diplomacy Calms Oil Markets

The rally followed confirmation that the first round of US-Iran talks in Switzerland had concluded on Sunday, with mediators Qatar and Pakistan facilitating the discussions. Vice President JD Vance met with Iranian representatives in what marked the inaugural face-to-face negotiations under a provisional peace framework reached earlier in June. Iranian negotiators insisted on an end to the war in Lebanon as a condition for further talks, while President Trump renewed threats to “hit Iran very hard again,” sending mixed signals that initially rattled markets.reuters

Brent crude, which had climbed above $82 a barrel on fears surrounding Iran’s renewed closure of the Strait of Hormuz, pulled back as diplomatic progress eased supply concerns. Gold rebounded over 1% on Monday after falling to a more-than-one-week low the previous session, with Reuters reporting the decline in crude prices helped ease inflation worries.facebook

Cautious Optimism Amid Uncertainty

US stock futures had slipped on Sunday evening, with S&P 500 futures down 0.4% and Nasdaq 100 contracts off 0.6%, as investors weighed the uncertain trajectory of the talks alongside a key inflation report due later in the week. However, the mood improved as Monday’s Asian session progressed and reports of diplomatic headway filtered through.yahoo

The talks come against a backdrop of months of volatile negotiations that have whipsawed global markets since the US-Iran conflict escalated in mid-2025. The Nikkei’s climb past 72,000 caps a remarkable run — the index broke through 70,000 just last week after the Bank of Japan raised its benchmark rate to 1%, and has nearly doubled from levels seen in early 2025.wikipedia