In Hong Kong, the benchmark Hang Seng Index opened 361 points, or 1.4 percent, higher at 26,138 on a day when mainland and Tokyo markets were closed for public holidays.
The China enterprises index was 107 points, or 1.2 percent, higher at 8,788 while the tech index was 77 points, or 1.6 percent, up at 4,948.
In Seoul, the Korea Composite Stock Price Index opened up 184 points, or 2.79 percent, at 6,782.
The benchmark Kospi continued to pile on the gains to be 261 points, or 3.97 percent, up at 6,860 at one point before noon.
US President Donald Trump announced that the United States would begin an effort to free up ships stranded in the Strait of Hormuz on Monday morning but gave no details of the plan.
A statement from Central Command said support would include guided-missile destroyers, over 100 land and sea-based aircraft and 15,000 service members.
Iran’s state-run IRNA news agency called Trump’s announcement part of his “delirium,” and Ebrahim Azizi, head of the national security commission of Iran’s parliament, said on X that any interference in the strait would be seen as a ceasefire violation.
Reporter Barak Ravid of US news website Axios said in a post on X late on Sunday the new Hormuz Strait initiative would not necessarily include US Navy ships escorting commercial ships.
US Navy ships will be “in the vicinity” in the event they need to prevent Iran’s military from attacking commercial ships moving through strait, Ravid said.
Brent crude futures were flat at US$108 per barrel, having recovered from an initial drop of more than two percent, while US crude was steady at US$102.
“Despite elevated energy prices and geopolitical uncertainty, corporate guidance and analyst estimate revisions have remained strong so far this quarter,” analysts at Goldman Sachs said.
“However, the reward for EPS beats has been unusually small.”
Concerns remained about the scale of AI capex investment which was now up at US$751 billion for 2026, US$80 billion above estimates at the start of the earnings season and 83 percent above spending in 2025.
The threat of oil-driven inflation had also lifted bond yields in a challenge to equity valuations, while several major central banks had turned hawkish on policy.
Markets implied just two basis points of easing from the Federal Reserve by year-end compared to 11 basis points a week ago.
Expectations for the European Central Bank had climbed to 76 basis points of hikes, with the Bank of England on 63 basis points.
The outlook for Fed policy could be budged by a raft of data this week which includes the payrolls report for April on Friday.
Median forecasts are for a rise of 60,000 in jobs following March’s outsized 178,000 gain, though problems with seasonal adjustment make for much uncertainty.
Analysts at Citi, for instance, are predicting a 15,000 drop in payrolls, and a rise in unemployment to 4.3 percent. (Reuters/Xinhua)
