Asian markets experienced mixed trading conditions on 25 May due to public holidays across the region. According to market reports, South Korea's Seoul Stock Exchange and KOSDAQ were shut on account of Vesak Day, while trading on the Hong Kong Stock Exchange was closed for the Birthday of the Buddha holiday. The holiday-thinned trading environment created subdued market conditions across the region, with minimal activity observed in most markets.
Among the markets that remained open, Japan's Nikkei 225 surged more than 3% to hit a record high of 65,408.87, crossing the 65,000 mark for the first time. As reported by market sources, investor sentiment improved after reports suggested that the strategically important Strait of Hormuz could reopen soon, easing concerns over oil supply disruptions and pushing crude prices lower. Japan's broader Topix index also advanced 1.36%, reflecting the positive market momentum. The latest surge builds on Japan's earlier gains when the Nikkei had crossed the 65,000 mark for the first time.
Oil prices fell more than 5% after President Donald Trump said in a Truth Social post that negotiations with Iran were "proceeding in an orderly and constructive manner," adding that he had told his representatives "not to rush into a deal in that time is on [their] side." The West Texas Intermediate futures for July was 4.47% lower at $92.28 per barrel in early Asia trade, while Brent crude futures for July fell 4.13% at $99.26 per barrel. Prices had climbed sharply after the Trump administration imposed a blockade on Iranian ports and Tehran effectively closed the Strait of Hormuz, one of the world's most important energy waterways. The latest developments show Brent crude prices slipped 0.7% to settle at $111.28, though it remains well above the $70 level from before the Iran war began.
Australia's S&P/ASX 200 was 0.27% higher in the holiday-thinned trading environment, showing resilience amid reduced market activity. China's CSI 300 added 0.48%, reflecting positive sentiment in the Chinese market. The minimal movement across most Asian markets contrasted with Japan's strong gains, highlighting the divergent market conditions across different regions. U.S. markets will also be closed Monday for Memorial Day, adding to the reduced global trading activity.
