Iran Peace Talks Stumble, but Tech and AI Demand Boost Asian Stocks
Oil prices surged over 2% due to stalled Middle East peace talks, but most Asian stock markets maintained gains, driven by the artificial intelligence (AI) boom. Japanese stocks rallied sharply on semiconductor gains, and Taipei stocks closed higher on strong performance by TSMC. Analysts noted that tech stocks are leading the market, ignoring geopolitical news.
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- 📰 Published: June 3, 2026 at 19:05
- 🔍 Collected: June 3, 2026 at 19:19 (14 min after Published)
- 🤖 AI Analyzed: June 6, 2026 at 16:32 (69h 12m after Collected)
(Central News Agency, Hong Kong, 3rd) Oil prices surged over 2% today due to lack of progress in Middle East peace talks, but most Asian stock markets maintained their upward trend, driven by the artificial intelligence (AI) boom.
According to AFP, despite repeated assurances from US President Donald Trump that the US and Iran are gradually moving closer to ending the three-month-long war and reopening the Strait of Hormuz, oil investors appear to be waiting for clearer progress.
Iranian media reported that Iran has halted communication with the US this week following an Israeli attack on Lebanon, heightening market unease. However, Trump denied this, stating, "Our dialogue has been ongoing, including 4 days ago, 3 days ago, 2 days ago, 1 day ago, and today."
Nevertheless, the US military said yesterday that it had "successfully repelled" a series of Iranian missile and drone attacks in the Persian Gulf and conducted a self-defense strike on Iran's Qeshm Island. US Central Command stated that three attack drones launched by Iran at "civilian vessels" were shot down.
Uncertainty over a peace agreement pushed major oil futures contracts up over 2%, with Brent crude rising more than 5% this week and West Texas Intermediate crude gaining at least 10%.
In contrast, stock markets extended their gains, driven by tech themes and AI demand. The Tokyo stock market surged over 2%, with semiconductor maker Tokyo Electron soaring more than 13% and Advantest rising 5.1%. The Taipei stock market closed 2% higher, boosted by a strong rally in TSMC.
Chris Beauchamp, Chief Market Analyst at IG Group, said, "The stock market is once again being led by tech stocks, actively ignoring geopolitical news. The tensions surrounding Iran have limited impact on investor enthusiasm, while a series of positive news from the AI industry is more attractive."
Japan's benchmark Nikkei index closed 2.5% higher at 68,402.13 points. Hong Kong's Hang Seng Index closed 1.6% lower at 25,633.21 points. The Shanghai Composite Index closed 0.2% higher at 4,083.97 points.
Among other Asian markets, Taipei, Seoul, Sydney, Singapore, Bangkok, and Manila closed higher. Kuala Lumpur, Jakarta, and Wellington closed lower. (Editor: Ho Hung-ju) 1150603
According to AFP, despite repeated assurances from US President Donald Trump that the US and Iran are gradually moving closer to ending the three-month-long war and reopening the Strait of Hormuz, oil investors appear to be waiting for clearer progress.
Iranian media reported that Iran has halted communication with the US this week following an Israeli attack on Lebanon, heightening market unease. However, Trump denied this, stating, "Our dialogue has been ongoing, including 4 days ago, 3 days ago, 2 days ago, 1 day ago, and today."
Nevertheless, the US military said yesterday that it had "successfully repelled" a series of Iranian missile and drone attacks in the Persian Gulf and conducted a self-defense strike on Iran's Qeshm Island. US Central Command stated that three attack drones launched by Iran at "civilian vessels" were shot down.
Uncertainty over a peace agreement pushed major oil futures contracts up over 2%, with Brent crude rising more than 5% this week and West Texas Intermediate crude gaining at least 10%.
In contrast, stock markets extended their gains, driven by tech themes and AI demand. The Tokyo stock market surged over 2%, with semiconductor maker Tokyo Electron soaring more than 13% and Advantest rising 5.1%. The Taipei stock market closed 2% higher, boosted by a strong rally in TSMC.
Chris Beauchamp, Chief Market Analyst at IG Group, said, "The stock market is once again being led by tech stocks, actively ignoring geopolitical news. The tensions surrounding Iran have limited impact on investor enthusiasm, while a series of positive news from the AI industry is more attractive."
Japan's benchmark Nikkei index closed 2.5% higher at 68,402.13 points. Hong Kong's Hang Seng Index closed 1.6% lower at 25,633.21 points. The Shanghai Composite Index closed 0.2% higher at 4,083.97 points.
Among other Asian markets, Taipei, Seoul, Sydney, Singapore, Bangkok, and Manila closed higher. Kuala Lumpur, Jakarta, and Wellington closed lower. (Editor: Ho Hung-ju) 1150603