TOKYO (AP) — Asian shares mostly rose Monday and oil prices plunged after U.S. President Donald Trump said talks on ending the war with Iran are progressing.
Japan’s benchmark Nikkei 225 surged 3.1% in morning trading to 65,321.56. Australia’s S&P/ASX 200 added 0.4% to 8,692.70. The Shanghai Composite edged up 0.4% to 4,127.53.
Trading was closed in South Korea and Hong Kong for holidays marking Buddha’s birthday. Trading will be closed in the U.S. on Monday for Memorial Day.
Reopening the Strait of Hormuz will help decide the direction of oil prices. The closure has prevented oil tankers from exiting the Persian Gulf and delivering crude to customers worldwide. Japan, for instance, imports almost all its oil, most of it through the strait.
“Markets are rapidly transitioning from pricing geopolitical fear toward pricing a potential peace dividend as Hormuz reopening expectations pressure oil and the dollar lower,” analyst Stephen Innes said in a commentary.
Early Monday, benchmark U.S. crude was down $4.35 at $92.25 a barrel. Brent crude, the international standard, sank $4.16 to $99.38 a barrel.
In currency trading, the U.S. dollar declined to 158.80 Japanese yen from 159.16 yen. The euro cost $1.1641, up from $1.1605.
The S&P 500 added 0.4% and pulled closer to its all-time high set in the middle of last week. The Dow Jones Industrial Average rose 0.6%, and the Nasdaq composite gained 0.2%.
The yield on the 10-year Treasury edged down to 4.56% Friday from 4.57% late Thursday, but it remains well above its 3.97% level from before the war.
AP Business Writer Stan Choe contributed to this report.
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