Nikkei Hits Record on AI Gains as Oil Tensions Lift Asia

Tokyo’s Nikkei 225 climbed 2.14% to a record, led by AI, semiconductor and technology-linked stocks. The broader Topix index rose 1.52%, with traders attributing part of the momentum to recent record levels on U.S. markets.

Elsewhere in Asia, moves were uneven. Hong Kong’s Hang Seng fell 0.98%. Australia’s ASX 200 gained 0.36% after data showed annual GDP growth of 2.5% and quarterly growth of 0.3% in the March quarter. South Korea’s markets were closed for Election Day, reducing regional trading volumes.

Reports presented to U.S. lawmakers indicated Iran had placed mines in parts of the Strait of Hormuz and fired on commercial vessels. Crude oil prices rose: West Texas Intermediate increased about 1.1% to $94.82 a barrel and Brent rose roughly 1.0% to $97.01. Market participants warned those price levels could complicate inflation readings and corporate earnings for energy-importing Asian economies.

Allianz Research projects a prolonged shutdown of the waterway could push Brent above $130 a barrel in a tail-risk scenario, while its baseline assumes markets and supply chains would adapt over time. Patrick Munnelly of TickMill wrote, ‘The market’s problem is not only the level of oil but also the volatility; each reversal makes it harder for investors and central banks to treat the shock as temporary.’

Tokyo’s gains were concentrated in companies tied to global hardware demand and AI-related products. Hong Kong’s decline reflected concerns about weaker China-linked demand and higher energy costs. Higher oil prices also influenced moves in bond markets, currencies and interest-rate expectations across the region.