In Tokyo, the Nikkei rose 290 points, or 0.55 percent, to 53,413 while the broader Topix erased early gains to end less than one point into negative territory at 3,644.
In Seoul, the Kospi closed up 73 points, or 1.36 percent, at 5,450 after rising more than 2 percent earlier in the session.
The gains by the two main indexes in Tokyo and Seoul came after Trump on Sunday warned that the United States could target Iran’s power plants and bridges as early as Tuesday if the strategic Strait of Hormuz is not reopened.
Trump’s repeated threats to destroy civilian infrastructure have put global traders on edge for reciprocal attacks by Iran on targets in the Gulf states.
However, he also suggested a diplomatic breakthrough might be imminent, saying a deal with Iran could be reached as soon as Monday and that negotiations with Iran were already underway, according to a Fox News report.
“Trump has become like the boy who cried wolf,” said Takamasa Ikeda, senior portfolio manager at GCI Asset Management.
“If he were really willing to attack Iran’s facilities, he would have done it already. The market started eyeing the withdrawal of the US, and the start of the post-war negotiations between allied nations without the US.”
The Nikkei rallied for a third consecutive session, but investors started selling stocks once the benchmark hit the psychologically important level of 54,000, said Kazuaki Shimada, chief strategist at IwaiCosmo Securities.
“The Nikkei has more resistance to the rise in oil prices, as the market started shifting its focus to growth in the artificial intelligence-related stocks,” he said. (Reuters)
Edited by Priscilla Ng
