Asia Stocks Hit Record Highs on Ceasefire Hopes; Nikkei Tops 65,000 for First Time

Major Asian stock markets, including Japan and Taiwan, hit record highs on May 25 as hopes rose for a ceasefire in the Middle East and for the reopening of the Strait of Hormuz.

Easing geopolitical risks and stabilizing oil prices fueled expectations for improved earnings at companies in Asia's import-dependent economies, spurring buying.

Japan's Nikkei 225 surged more than 2,000 points in morning trading on May 25, climbing as high as 65,408.87, the Nihon Keizai Shimbun and CNBC reported.

The gains were driven by expectations that the Strait of Hormuz, a key artery for global logistics, could reopen soon as ceasefire talks between the US and Iran entered their final stage.

President Donald Trump boosted those expectations in a social media post on May 23, writing that a ceasefire agreement with Iran would be "announced soon."

He wrote again on May 24 that he had instructed the US negotiating team not to rush the deal. Even so, financial markets increasingly focused on the broader move toward reopening the Strait of Hormuz.

In morning trading on May 25, New York crude futures briefly fell below $92 a barrel, indicating the recent rally in oil prices was easing.

As of 12:45 p.m., the Nikkei was up 3.04% from the previous session at 65,265.68, maintaining its strong momentum.

Taiwan's Taiex also set a fresh record around the same time, jumping 2.82% to 43,461.44.

Chinese stocks were also broadly higher, rising a modest 0.4% to 0.5%.

South Korea's stock market was closed on May 25 for a substitute holiday for Buddha's Birthday.

Hong Kong markets were also shut for Buddha's Birthday, while US markets were closed for Memorial Day, observed on the last Monday of May each year.

Park Sang-kyung, Hankyung.com reporter, highseoul@hankyung.com