Asian Markets Mixed Amid US-Iran Stalemate, AI Setbacks

Hong Kong, May 13 (AFP) - Asian stock markets closed mixed on Monday as they digested a lack of progress in Middle East peace and a blow to the artificial intelligence (AI) tech boom.

Following US President Trump's warning that a Middle East ceasefire deal was on the verge of collapse, Iran's chief negotiator stated yesterday that Washington must accept Tehran's latest peace plan or face failure. Neither side is willing to concede, repeatedly threatening to resume fighting, but for now, neither seems inclined to return to a state of all-out war.

Investors are now turning their attention to China, as President Trump arrives in Beijing today, the first US president to visit China in nearly a decade. Trump said he expects to have a "long talk" with Chinese President Xi Jinping to discuss the Iran issue. Trump also stated he would ask Xi to "open up" the Chinese market to American companies.

The tech-heavy Korea Composite Stock Price Index (KOSPI) plunged 5% yesterday after a high-ranking official proposed a policy of "universal basic dividend" to redistribute the excess profits of AI companies. The KOSPI closed up over 2% today at a record high of 7,844.01 points.

The breakdown in negotiations between Samsung Electronics and its largest union has dealt a heavy blow to the development prospects of South Korea's AI industry, with Samsung's stock price at one point falling 6.1%.

Japan's benchmark Nikkei index closed up 0.8% today at 63,272.11. Hong Kong's Hang Seng Index closed up 0.2% at 26,388.44. The Shanghai Composite Index closed up 0.7% at 4,242.57.

As for other Asian markets, Taipei, Sydney, Kuala Lumpur, Jakarta, Wellington, and Manila all closed lower. Seoul and Singapore closed higher. (Translation: Ho Hung-ju) 1150513