HONG KONG — Asian share markets traded mixed Monday as optimism over progress in U.S.-Iran negotiations weighed on oil prices while raising uncertainty about the broader economic outlook, dealers said.
Stocks in Japan and South Korea rose, while some other regional markets showed weakness, according to trading data. The developments followed reports of encouraging progress in diplomatic talks between the United States and Iran aimed at securing a lasting peace agreement.
U.S. futures were trading lower. Oil prices edged down on fresh optimism about the negotiations, which mediators described as constructive. Brent crude fell about 1.7% in early trading to around $79 per barrel, market reports indicated.
Tokyo’s Nikkei 225 jumped 1.6% to 72,364.82, hitting a new intraday record high of 72,831.73, supported by technology stocks amid excitement over artificial intelligence developments, dealers said. South Korean markets also advanced.
In contrast, Chinese equities underperformed after a holiday reopening. The Hang Seng China Enterprises Index declined more than 2%, pushing its drop from recent highs toward bear-market territory, according to reports.
The U.S.-Iran talks, held in Switzerland, resulted in agreement on a roadmap toward a final deal within 60 days, mediators from Qatar and Pakistan said. Technical discussions are set to continue.
"Details remain unclear" on the full market impact or specific investor reactions across all Asian bourses, with trading influenced by a mix of geopolitical relief and concerns over global growth.
The negotiations come amid broader efforts to de-escalate tensions following earlier conflict. Progress has contributed to unwinding some geopolitical risk premiums in energy markets.
Analysts and traders weighed the potential for reduced oil supply risks against other macroeconomic factors. Gold prices rebounded as investors balanced improving geopolitical conditions with ongoing uncertainties.
Regional performance reflected varied sector responses, with energy-related shares facing pressure from lower oil prices. U.S. markets were closed Friday for a holiday, adding to cautious sentiment in futures trading.
As of Monday afternoon in Asia, trading continued with no finalized closing figures available. Negotiators plan further technical talks this week as both sides work toward implementing aspects of the emerging agreement.
