Asian Markets Mixed, Oil Rises as Trump Rejects Iranian Proposal

Asian markets opened the week with mixed results following reports that US President Donald Trump rejected a conditional Iranian proposal to end the conflict and reopen the Strait of Hormuz. According to the Wall Street Journal, Trump told his advisers he expects US strikes in the country to resume after the midterm elections in November.

Oil Prices Climb Amid Geopolitical Tensions

Oil prices rose sharply in early trading. Brent crude climbed 2% to $106.30 a barrel, while WTI crude advanced 1.2% to $93.50 a barrel.

"President Trump rejected an updated Iranian peace proposal aimed at ending the confrontation and reopening the Strait of Hormuz," market analysts noted.

Divergence in Asian Semiconductor Stocks

Tokyo's Nikkei index showed little movement overall, but chip stocks experienced a sharp divergence. Companies tied to the artificial intelligence ecosystem advanced, while others declined. Advantest rose 3.3% on the Nikkei index, alongside a 3% increase for Dainippon Screen and 2.5% for SoftBank. Conversely, Advantest competitors faced pressure, with Sumco dropping 4.1%. South Korean tech giants also had a weak session, with Samsung falling 4.5% and SK Hynix losing 4.8%.

Regional indices reflected the mixed sentiment: Hong Kong's Hang Seng index rose 0.8%, South Korea's Kospi dropped 2.4%, and the Shanghai Composite fell 1.7%.

China's Industrial Profits Slow Down

In macroeconomic news, official data released in China showed that profits of major industrial firms rose 4.2% in August compared to the same month last year. However, during the first eight months of the year, profits increased by 15.7%, marking a slowdown compared to the 17.6% growth recorded in the January-July period. This represents the fourth consecutive month of deceleration in the growth rate, which stood at 24.7% in April.