Japan’s Nikkei share average rose on Monday, nearing the all-time high it scaled last week, as optimism over the red-hot artificial intelligence sector outweighed concerns about the Middle East crisis. The benchmark S&P 500 and the tech-heavy Nasdaq both climbed to their third record close in a row on Friday after Iran said it would open the Strait of Hormuz shipping lane for oil. However, hopes for a lasting ceasefire faded over the weekend after the United States said it had seized an Iranian ship that tried to run its blockade, and Iran vowed to retaliate. Takayuki Miyajima, senior economist at Sony Financial Group, noted that “the trend of major U.S. indices hitting record highs across the board, along with expectations for the AI sector and corporate earnings, are providing support for Japanese stocks.” The market is likely to see a tug-of-war amid a prone environment to swinging between optimism and pessimism in response to reports on the situation in Iran. There were 124 advancers on the Nikkei index against 98 decliners. SoftBank Group and chip-sector supplier Lasertec were among the sharpest gainers on the gauge, with both rising more than 5.4%.
