Asian markets advance as tech gains defy geopolitical headwinds

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Asian equity markets advanced on Monday, powered by a sweeping rally in technology shares as investor enthusiasm for artificial intelligence eclipsed lingering uncertainties surrounding a potential U.S.-Iran peace agreement.

Gold prices steadied above $4,500 an ounce.

WTI crude futures climbed toward $90 per barrel.

The benchmark KOSPI climbed more than 3% to around 8,750.

Japan's (NKY:IND [https://seekingalpha.com/symbol/NKY:IND]) rose 0.78% to around 66,900, reaching a fresh record high. The Japanese yen [https://seekingalpha.com/symbol/USD:JPY#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] traded around 159.5 per dollar, remaining under pressure and hovering near the closely watched 160 level.

The S&P Global Japan Manufacturing PMI [https://seekingalpha.com/news/4598726-sp-global-confirms-japan-may-manufacturing-pmi-at-545-down-from-april] for May 2026 was confirmed at 54.5, matching the preliminary estimate, lower than April's 55.1 but still indicating growth, although at a slower pace.

Meanwhile, Japan’s capital spending was unchanged in the first quarter compared with a year earlier, pointing to a slowdown in corporate investment.

Market participants are now awaiting remarks from BOJ Governor Kazuo Ueda later this week for further insight into the central bank’s policy outlook.

China's (SHCOMP [https://seekingalpha.com/symbol/SHCOMP]) rose 0.22% to 4,053, its lowest level in over a month, while the Shenzhen Component rose 0.3% to 15,622, and the offshore yuan [https://seekingalpha.com/symbol/USD:CNY#source=url_first_level%3Amarket-news%7Csection%3Aglobal%7Csection_asset%3Afull_story%7Cbutton%3Abody_link] edged lower to around 6.76 per dollar, retreating from a more than three-year high reached in the previous session.

The RatingDog China Manufacturing PMI [https://seekingalpha.com/news/4598725-chinas-may-pmis-show-mixed-recovery-services-rebound-while-factory-growth-moderates] eased to 51.8 from April’s over five-year high of 52.2.

The government's official NBS Manufacturing PMI edged down to 50.0 from 50.3 in April, perfectly matching market forecasts. The official NBS Non-Manufacturing PMI jumped to 50.1 from 49.4 in April. China’s NBS Composite PMI Output Index ticked up to 50.5 from 50.1 in April.

Hong Kong (HSI [https://seekingalpha.com/symbol/HSI]) rose 0.94% to 25,357, kicking off the new month on a positive note.

India (SENSEX [https://seekingalpha.com/symbol/SENSEX]) rose 0.02% to 74,982, rebounding from losses in the last three straight sessions. The Indian rupee strengthened to around 94.7 per dollar.

India’s HSBC Manufacturing PMI rose to 55.0 in May 2026, a three-month high, from 54.7 in April.

Australia (AS51 [https://seekingalpha.com/symbol/AS51#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]) fell 0.12% to 8,707 in early trade on the first day of June, reversing the prior session’s rally. The Australian dollar traded flat at $0.71, sitting near a two-week high as markets awaited key releases, including the April trade balance, Q1 current account, and GDP figures.

The S&P Global Australia Manufacturing PMI [https://seekingalpha.com/news/4598727-australia-may-manufacturing-pmi-revised-upward-to-507-easing-from-april-high] increased to 50.7 in May 2026, up from a preliminary estimate of 50.2 but down from 51.3 in April.

Separate data showed, ANZ–Indeed Australian Job Ads rose 1.8% mom in May 2026, rebounding from a 0.6% decline in the prior month and marking the first gain since February.

Australia’s Melbourne Institute Monthly Inflation Gauge fell 0.3% month-on-month in May 2026, reversing a 0.6% increase in the previous month.

In the U.S. on Friday, all three major indexes ended higher as markets gauged the sustainability of the AI rally and assessed the outlook of oil supply from the Middle East and its impact on inflation.

U.S. stock futures moved modestly higher as June trading got underway, with the major indexes remaining near record levels: Dow +0.11%; S&P 500 +0.28%; Nasdaq +0.56%.

CURRENCIES: (JPY:USD [https://seekingalpha.com/symbol/JPY:USD]), (CNY:USD [https://seekingalpha.com/symbol/CNY:USD]), (AUD:USD [https://seekingalpha.com/symbol/AUD:USD]), (INR:USD [https://seekingalpha.com/symbol/INR:USD]), (HKD:USD [https://seekingalpha.com/symbol/HKD:USD]), (NZD:USD [https://seekingalpha.com/symbol/NZD:USD]).

MORE ON ASIA MARKETS:

* FXI And MCHI: China Is A Perfect Example Of A Value Trap [https://seekingalpha.com/article/4910115-fxi-and-mchi-china-is-perfect-example-of-value-trap]
* DXJ: Japanese Equities Remain Attractive; Positive Carry Enhances The Appeal [https://seekingalpha.com/article/4907408-dxj-japanese-equities-remain-attractive-positive-carry-enhances-the-appeal]
* OpenAI IPO Will Be An Artificial Intelligence Bubble Litmus Test [https://seekingalpha.com/article/4907222-openai-ipo-will-be-an-artificial-intelligence-bubble-litmus-test]
* S&P Global confirms Japan May manufacturing PMI at 54.5, down from April [https://seekingalpha.com/news/4598726-sp-global-confirms-japan-may-manufacturing-pmi-at-545-down-from-april]
* China’s May PMIs show mixed recovery: Services rebound while factory growth moderates [https://seekingalpha.com/news/4598725-chinas-may-pmis-show-mixed-recovery-services-rebound-while-factory-growth-moderates]