Tokyo stocks end higher as Trump says U.S.-Iran peace deal 'largely negotiated'

Tokyo stocks ended higher on Monday, with the benchmark Nikkei stock index closing above the 65,000 mark for the first time, boosted by progress in U.S.-Iran peace talks and growing hopes for a settlement in the Middle East conflict.

The 225-issue Nikkei Stock Average ended up 1,819.12 points, or 2.87 percent, from Friday at 65,158.19.

U.S. President Donald Trump announced Saturday that a peace agreement with Iran had been "largely negotiated," subject to finalization between the United States, Iran and other relevant countries in the Middle East.

As part of the agreement, the Strait of Hormuz will be opened, Trump said in a post on Truth Social.

Timothy Pope, a market analyst for China Global Television Network (CGTN), recapped the reaction of Japanese markets.

"Japan's Nikkei 225 closed at another record high, 65,158.19, that was a jump of 2.9 percent. Shares related to AI continued to be the biggest gainers today, with some of the stronger sentiment actually coming from optimism over a possible end to the war in Iran. This follows some statements over the weekend by President Trump saying first that there was a memorandum of understanding over a peace deal and that it was largely negotiated. The markets have consistently traded on this pattern of diplomacy that we have seen from the U.S. -- upbeat announcements and social media posts at the weekends, when markets are watching for opening signals," he said.

"This is significant for Japan, even more so I think than many other Asian markets, because Japan is almost totally dependent on imported oil and natural gas, and these AI-linked companies, which are some of the most successful and heavy-weighted on Japan's stock indices at the moment, they are all incredibly energy-intensive. Computing, cloud storage, and the manufacturer of these components that make of these stuff possible, all of that uses a lot of energy. If a peace deal can be arrived at and made to stick, it could really stop energy costs for these companies becoming critical and really eating into bottom lines," said Pope.

Tokyo stocks end higher as Trump says U.S.-Iran peace deal 'largely negotiated'

Chinese President Xi Jinping awarded Serbian President Aleksandar Vucic the Friendship Medal of the People's Republic of China in Beijing on Monday.

As solemn music played and the golden doors slowly opened, Xi and Vucic entered the hall together, followed by Xi's wife Peng Liyuan and Vucic's wife Tamara Vucic.

Applauding guests rose to their feet, and paid respect to the two heads of state.

A Guard of Honor escorted the Friendship Medal into the hall, and amid solemn music, Xi formally presented the medal to Vucic.

Xi highlighted Vucic's long-standing commitment to advancing China-Serbia friendship and underscored the significance of the honor.

"President Vucic has long stayed committed to China-Serbia friendship, and he has always given China the firmest and clearest support on issues concerning China's core interests and major concerns. He gains the respect from the Chinese people. This medal is not only a high recognition of President Vucic's contributions to bilateral friendship, but also carries the earnest expectations of both peoples for building a China-Serbia community with a shared future in the new era," Xi said.

The Friendship Medal is China's highest state honor for foreigners, reserved for those who have made outstanding contributions to China's modernization drive, promoting exchange and cooperation between China and the world, and safeguarding world peace.

At the invitation of Xi, Vucic is on a state visit to China from Sunday to Thursday, with this marking his first state visit to China and his ninth trip to the country overall.

Xi awards Serbian President Aleksandar Vucic China's friendship medal