TOKYO (AP) — Global shares mostly rose Monday and oil prices sank more than $4 after U.S. President Donald Trump said talks on ending the war with Iran are progressing.
France's CAC 40 edged up 1.1% to 8,203.32, while the German DAX rose 1.0% to 25,148.39. Britain's FTSE 100 added 0.2% to 10,466.26. Trading will be closed in the U.S. for the Memorial Day holiday.
In Asia, Japan's benchmark Nikkei 225 surged 2.9% to finish at 65,158.19. Australia's S&P/ASX
200 added 0.4% to 8,692.00. The Shanghai Composite gained nearly 1% 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% and the Dow industrials climbed 0.6%. The Nasdaq composite gained 0.2%.
Benchmark U.S. crude oil declined $4.77, or more than 4%, to $91.83 a barrel. Brent crude, the international standard, sank $4.86 to $98.68 a barrel.
In currency trading, the U.S. dollar declined to 158.95 Japanese yen from 159.16 yen. The euro cost $1.1644, up from $1.1605.
Recent earnings reports from U.S. companies that topped analysts’ expectations are helping markets, though concerns over inflation have risen as the war has dragged on.
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Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama
