TOKYO (AP) — Stock markets across Asia climbed higher Monday as traders kept a watchful eye on escalating tensions with Iran, climbing energy costs, and potential policy moves from President Donald Trump.
Japan’s main Nikkei 225 index advanced nearly 1.1% to reach 53,692.42 during morning sessions. South Korea’s Kospi index posted stronger gains of 1.5%, closing at 5,460.24. Markets remained shuttered in Australia for the Easter holiday, while exchanges in Hong Kong and Shanghai stayed closed for traditional Chinese celebrations.
A critical Tuesday deadline set by Trump for Iran to reopen the Strait of Hormuz is approaching rapidly. Market analysts worry the conflict could intensify beyond that point. Trump issued additional warnings against Iran over the weekend as military operations persisted in the area. U.S. forces successfully recovered two pilots after Iran shot down their military aircraft.
Energy markets remain the primary concern for traders worldwide.
U.S. crude oil futures climbed 38 cents to reach $111.92 per barrel. International Brent crude prices jumped $1.71 to $110.74 per barrel. While energy trading was suspended Friday, petroleum prices have been climbing steadily due to concerns the Iranian conflict may continue longer than initially anticipated.
Although the United States imports only a small percentage of its oil from the Persian Gulf region, petroleum operates as a global commodity with worldwide pricing. Countries such as Japan, which lacks natural energy resources, depend heavily on imports and require open access through the Strait of Hormuz.
“As we kick off the first full trading week of April, the word uncertainty is paramount. Last year it was centered on the impact of ‘Liberation Day’ tariffs, this year it’s uncertainty surrounding the ongoing Iranian War,” said Jay Woods, analyst at Freedom Capital Markets in New York.
American financial markets remained closed for Good Friday and will resume operations Monday. Several European exchanges also suspended trading Friday.
Currency markets saw the U.S. dollar edge slightly higher to 159.65 Japanese yen Monday from 159.63. The euro declined to $1.1509 from $1.1517.
