South Korea's Kospi index opened at a record high on Monday, rising 3.67% amid a backdrop of increasing oil prices and heightened tensions between the U.S. and Iran. This surge in the Kospi reflects a broader trend in Asia-Pacific markets, although investor sentiment remains cautious due to geopolitical uncertainties.
President Donald Trump rejected Iran's latest proposal aimed at ending the ongoing conflict, labeling it "TOTALLY UNACCEPTABLE!" on his Truth Social platform. Iran's proposal, reported by the semi-official Tasnim news agency, called for a comprehensive end to hostilities and the lifting of sanctions.
Concurrently, Israeli Prime Minister Benjamin Netanyahu stated that the conflict with Iran is ongoing, emphasizing the U.S. and Israel's commitment to addressing Iran's nuclear ambitions. The situation has contributed to rising global energy prices, with West Texas Intermediate crude oil futures increasing by 3.39% to $98.65 per barrel, and Brent crude futures rising 3.37% to $104.66 per barrel.
In contrast to the Kospi's gains, other markets showed mixed results; Japan's Nikkei 225 rose 0.81%, while Australia's S&P/ASX 200 fell by 0.71%. Futures tied to the Dow Jones Industrial Average and the S&P 500 both declined by 0.3%.
This market activity follows a strong performance last week, where the S&P 500 and Nasdaq Composite saw significant gains, marking their sixth consecutive winning weeks, a first since 2024