Asian Shares Mixed, Oil Surges 4% After Trump Rejects Iran Ceasefire Response

Asian stock markets showed divergent trends Monday (May 11, 2026) as oil prices surged more than 4% after U.S. President Donald Trump dismissed Iran's response to a U.S.-backed ceasefire proposal as 'TOTALLY UNACCEPTABLE!' in a social media post. Brent crude rose 4.2% to $105.57 a barrel, while U.S. crude climbed 4.7% to $99.89, amid continued disruptions to the Strait of Hormuz and ongoing U.S. naval blockades of Iranian ports.

Japan's Nikkei 225 fell 0.4% to 62,486.84 despite touching an intraday record above 63,300, with SoftBank Group dropping over 5%. South Korea's Kospi advanced 4.1% to 7,804.71, hitting an all-time high driven by gains in Samsung Electronics and SK Hynix. Hong Kong's Hang Seng declined 0.3%, Australia's S&P/ASX 200 lost 0.6%, and India's Sensex fell 1.3%, while Shanghai Composite rose 0.9% on stronger factory data and robust export numbers.

Wall Street closed at record levels Friday (May 8, 2026), with the S&P 500 gaining 0.8% to 7,398.93 and the Nasdaq rising 1.7% to 26,247.08, supported by stronger-than-expected U.S. jobs data. U.S. stock futures dipped Monday, and the dollar strengthened to 157.14 yen from 156.61 yen, while the euro slipped to $1.1756.

The Iran conflict is expected to feature in talks between Trump and Chinese President Xi Jinping later this week, as the U.S. seeks Beijing's support in pressuring Tehran to reopen the Strait of Hormuz. Analysts at ING noted that while hopes remain for diplomatic progress, the oil market continues to be driven by headline volatility.

The White House confirmed the Trump-Xi meeting will proceed as scheduled, with energy security and regional stability listed on the agenda. The court will resume hearing on Tuesday.