Asian Markets Rise as Iran Conditions Strait of Hormuz Reopening

Asian share markets rose Monday, with Japan's Nikkei gaining 0.6% and South Korea adding 0.5%. The growth follows record highs on Wall Street, which were driven by a soft U.S. jobs report that lowered immediate borrowing cost risks.

JPMorgan Chase & Co. analysts noted that upcoming July consumer price data will be critical for the Federal Reserve's September interest rate decision. While the firm's core CPI forecast of 0.22% may not prompt a hike, repeated prints closer to 0.3% could trigger one. Bank of America Corp. reported that AI continues to drive S&P 500 earnings, with median growth of 28% compared to 12% for non-AI stocks.

Geopolitical tensions contributed to climbing oil prices as Gulf peace talks stalled. The Government of Iran announced that a deal with the Government of Oman to define new shipping lanes in the Strait of Hormuz is in its final stages. However, Iran maintains that the waterway will not reopen until the United States meets specific conditions.