Tokyo | Global shares mostly rose Monday and oil prices sank more than USD 4 after US President Donald Trump said talks on ending the war with Iran are progressing.
France's CAC 40 edged up 1.1 per cent to 8,203.32, while the German DAX rose 1.0 per cent to 25,148.39. Britain's FTSE 100 added 0.2 per cent to 10,466.26. Trading will be closed in the US for the Memorial Day holiday.
In Asia, Japan's benchmark Nikkei 225 surged 2.9 per cent to finish at 65,158.19. Australia's S&P/ASX 200 added 0.4 per cent to 8,692.00. The Shanghai Composite gained nearly 1 per cent to 4,152.57. Trading was closed in South Korea and Hong Kong for holidays marking Buddha's birthday.
Trump said negotiations with Iran were "proceeding in an orderly and constructive manner." Meanwhile, regional officials told The Associated Press on Sunday that the United States is close to reaching a deal with Iran that would end the war, reopen the Strait of Hormuz and see Iran give up its stockpile of highly enriched uranium, Reopening the Strait of Hormuz will help decide the direction of oil prices. Its closure due to the war 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.
On Friday, the S&P 500 added 0.4 per cent and the Dow industrials climbed 0.6 per cent. The Nasdaq composite gained 0.2 per cent.
Benchmark US crude oil declined USD 4.77, or more than 4 per cent, to USD 91.83 a barrel. Brent crude, the international standard, sank USD 4.86 to $98.68 a barrel.
In currency trading, the US dollar declined to 158.95 Japanese yen from 159.16 yen. The euro cost USD 1.1644, up from USD 1.1605.
Recent earnings reports from US companies that topped analysts' expectations are helping markets, though concerns over inflation have risen as the war has dragged on.
