Asia markets surge on falling oil prices

May 25, 2026 (MLN): Asian equities rallied sharply on Monday, led by a historic surge in Japan’s benchmark index, after easing geopolitical concerns in the Middle East triggered a steep decline in oil prices and improved global risk appetite.

Japan’s Nikkei 225 crossed the 65,000 mark for the first time ever, climbing over 3% during thin holiday trading in Asia to touch a record high of 65,408.87. The broader TOPIX also advanced 1.19%, according to CNBC.

Investor sentiment strengthened after reports suggested the strategically important Strait of Hormuz could soon reopen, easing fears of prolonged disruption to global energy supplies.

Optimism further increased after Donald Trump said negotiations with Iran were moving forward “in an orderly and constructive manner,” signaling a possible de-escalation in tensions.

The softer geopolitical tone sparked a sharp retreat in crude oil prices, which had previously surged following U.S. actions targeting Iranian ports and concerns over restricted passage through the Strait of Hormuz.

U.S. benchmark West Texas Intermediate crude futures for July delivery dropped 5.87% to $90.93 per barrel in early Asian trading, while Brent Crude futures declined 5.58% to $97.76 per barrel.

Elsewhere in the region, Taiwan’s Taiex surged nearly 3% to a record 43,495.92, crossing the 43,000 level for the first time. Australia’s S&P/ASX 200 gained 0.45%, while China’s CSI 300 advanced 0.91%. India’s Nifty 50 also moved higher, rising 1.09%.

Trading activity remained relatively light as markets in Hong Kong and South Korea stayed closed for public holidays, while U.S. financial markets are shut on Monday in observance of Memorial Day.

On Wall Street, U.S. equities had already ended Friday on a positive note. The Dow Jones Industrial Average rose 294.04 points, or 0.58%, to close at a record 50,579.70 after touching an intraday all-time high.

The S&P 500 gained 0.37% to finish at 7,473.47, while the Nasdaq Composite added 0.19% to settle at 26,343.97.

Copyright Mettis Link News