Chip Stocks Surge in Asia, Oil Prices Climb as Iran Tensions Rise

TOKYO (AP) — Asian markets were mixed on Monday, but stocks in Tokyo and Seoul jumped as investors bought shares of computer chipmakers. Japan’s Nikkei 225 index added 1.7%, closing at 66,104.93. South Korea’s Kospi surged 3.3% to 6,907.53. Shares of Samsung Electronics rose 4.5%, while memory chipmaker SK Hynix jumped 6.2%. "The AI complex continues to provide the local equity markets with its most dependable growth pulse," said Stephen Innes, a former trader. "The hardware trade is still refusing to roll over." In contrast, Hong Kong’s Hang Seng fell 1.1% to 25,377.12. The Shanghai Composite lost 0.2% to 3,920.70. Australia’s S&P/ASX 200 was nearly flat at 9,005.30. Oil prices rose as the U.S. war with Iran escalated. Brent crude, the international standard, added 67 cents to $96.95 a barrel. Benchmark U.S. crude rose 61 cents to $92.09. The U.S. military denied Iran's claim that it struck an uncrewed American vessel in the Strait of Hormuz, calling the report a "total lie." A senior Iranian official said Tehran plans to announce an "exclusion zone" outside the strait. This follows U.S. strikes on three Iranian oil tankers after Iran launched missiles at U.S. warships. U.S. markets are closed Monday for Labor Day. They ended last week lower after the government reported that employers added 162,000 jobs last month. This was more than expected, which could push the U.S. central bank to raise interest rates later this month. The S&P 500 fell 0.4% on Friday. The Dow Jones Industrial Average dropped 0.5%, and the Nasdaq composite lost 0.3%. Investors expect the Federal Reserve to raise rates before the year ends to fight inflation, which remains above 3%. The Fed’s next policy meeting ends Sept. 16. Its target is 2% inflation. August inflation data is due Sept. 11. The yield on the 10-year Treasury rose to 4.78% from 4.77% on Friday. In currency trading, the U.S. dollar was little changed at about 156.22 Japanese yen. The euro cost $1.1609, down from $1.1621. The weak yen is a major concern for Japanese leaders. The dollar surged to the 160 yen level last week before pulling back. Investors are watching the Bank of Japan's next policy meeting later this month. "The stronger-than-expected U.S. employment report generated only a limited recovery in the dollar," said Linh Tran, a market analyst at XS.com. "The market is currently responding more strongly to the changing BOJ policy outlook."