Asian Stocks Advance as AI Boom Offsets Gulf Tensions, Oil Surge

Asian stocks rose on June 1, 2026, as roaring demand for AI-related technology countered stalled Middle East peace talks that drove oil prices higher. Japan's Nikkei 225 added 0.5%, building on last week's 5% surge to all-time highs, while South Korea's Kospi gained 1.3%. MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.2%. Brent crude climbed 1.9% to $92.89 a barrel and U.S. crude rose 2.4% to $89.46 after Washington warned it could resume attacks on Iran if no deal is reached, and Israel pushed deeper into Lebanon. European futures dipped, but S&P 500 and Nasdaq futures firmed 0.2% and 0.4%, respectively, after last week's records. The 10-year Treasury yield rose 3 basis points to 4.47%, and markets now see a 50% chance the Federal Reserve will hike rates by year-end. The dollar held steady, and gold was flat at $4,535 an ounce. Friday's payrolls report is expected to show a gain of 85,000 jobs.