Asian markets today: South Korea’s Kospi climbed to a new record high on Tuesday, 26 May, as markets reopened after a public holiday, buoyed by optimism surrounding a possible breakthrough in the US-Iran peace negotiations.
The Kospi advanced to an intraday high of 8,094.90, while the small-cap Kosdaq gained 2.12% in early trading.
Japan’s Nikkei 225 edged down 0.18% due to profit booking, and the Topix slipped 0.36%. Notably, the Nikkei 225 had crossed the 65,000 mark for the first time on Monday during thin holiday trading across Asia.
Australia’s S&P/ASX 200 declined 0.17% at the open. Meanwhile, Hong Kong’s Hang Seng index futures stood at 25,430, below the benchmark index’s previous close of 25,606.03 on Friday.
Back home, Gift Nifty was trading near the 24,068 mark, around 5 points higher than the previous close of Nifty futures, signaling a flat opening for the Indian benchmark indices.
“Asian markets reacted positively to the developments. South Korea’s Kospi surged nearly 3% after resuming trade post-holiday, while Dow futures jumped more than 400 points as falling oil prices supported expectations of easing inflationary pressure globally,” said Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth.
What’s driving Asian markets today?
President Donald Trump on Monday said talks with Iran were “progressing well,” while cautioning that the US could restart attacks if negotiations did not succeed.
Highlighting the fragile nature of the discussions, the US Central Command stated that it carried out “self-defense strikes” against Iranian missile launch sites and vessels allegedly attempting to deploy mines in the southern region of Iran.
Oil prices showed a mixed trend following Trump’s remarks. July delivery West Texas Intermediate futures declined 5.37% to $91.41 per barrel, while July Brent crude futures, the global benchmark, gained nearly 1.75% to $97.82 per barrel.
Traders are increasingly betting that the worst phase of the Middle East energy crisis may have passed, after months of conflict disrupted oil supplies, heightened inflation concerns, and pushed bond yields upward. A potential agreement to reopen the Strait of Hormuz and prolong the US-Iran ceasefire could further reduce pressure on oil markets and fuel the AI-driven rally in equities.
“Global sentiment improved overnight after fresh optimism emerged around potential progress in US-Iran negotiations. Comments from US President Donald Trump suggesting that discussions with Iran were “proceeding nicely” triggered a sharp correction in crude oil prices and improved overall global risk appetite. At the same time, hopes of de-escalation in West Asia reduced immediate fears around disruptions in the Strait of Hormuz, a critical route for global energy supplies,” Hariprasad added.
US stock market today
US stock futures moved higher, with Dow Jones Industrial Average futures advancing 0.73%, S&P 500 futures climbing 0.78%, and Nasdaq-100 futures surging 1.14%.
Meanwhile, US markets remained closed on Monday on account of the Memorial Day holiday.
On Friday, the Dow Jones Industrial Average touched a fresh intraday record high on Friday for the first time since the start of the US-Iran conflict, supported by AI-led market momentum and growing optimism around negotiations aimed at ending the war, which boosted investor risk appetite.
The blue-chip index climbed to an intraday peak of 50,712.24 points and was later trading 0.6% higher, surpassing its previous record high of 50,512.79 recorded on February 10, after crossing the 50,000 mark earlier this week.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
