Asian stocks rose after a rally in chipmakers drove the Nasdaq 100 Index to its first record since June, while falling oil prices added support as diplomatic efforts to end the war with Iran progressed.

MSCI’s Asia Pacific equity index climbed 0.3%, a sixth straight day of gains, with Japanese markets closed for a holiday. Bellwether chip stocks such as Samsung Electronics Co. and SK Hynix Inc. climbed.

Earlier, Shopify Inc. jumped 7.1% after striking a partnership with Meta Platforms Inc. for its new Muse AI agent. Concerns about how AI would erode margins and fees at financial brokerages spurred a selloff in US financial stocks and dragged other key equity indexes.

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Elsewhere, Brent fell as much as 1% before paring its losses to trade around $99.10 a barrel as President Donald Trump said US officials had a “very good” meeting with Iranian envoys as Washington renewed efforts to end the conflict. Gold and a Bloomberg gauge of the dollar held their gains from the previous session. There will be no cash trading in Treasuries due to the Japan holiday.

Technology stocks are reasserting their leadership in global markets, with chipmakers again emerging as a key source of gains. With the economic data calendar thin this week, further advances may hinge on whether diplomacy can push oil prices lower and ease pressure on bond yields. Investors are also looking to the summit between Trump and China’s Xi Jinping for signs of progress on trade and other economic disputes.
“Focus will stay on geopolitics, and if there’s any confirmation of progress towards a ceasefire between the US and Iran, look for oil and yields to fall further and for stocks to rally,” said Tom Essaye at The Sevens Report.Chipmakers surged at the start of the week amid early signs of success for Meta’s AI agent. Still, shares in several Asian consumer-facing industries, including major banks, insurers and online travel stocks, may come under pressure, after fears that Meta’s Muse may upset businesses relying on so-called consumer inertia.

Consumer inertia is the tendency to keep buying something out of habit even when better alternatives exist.

“For now, semiconductors and memory remain at the center of the equity conversation,” Chris Weston, head of research at Pepperstone Group Ltd., wrote in a note.

Crude oil remains another key focus area for markets as Saudi Arabia moved to restart a key pipeline and the US flagged progress in talks with Iran to end a war that’s rocked supplies from the Middle East.

Investors are also parsing commentary from Federal Reserve officials for clues on the rate path after last week’s quarter-point hike.

Richmond Fed President Tom Barkin warned inflationary shocks could take time to fade, while Boston’s Susan Collins backed the increase and St. Louis Fed President Alberto Musalem said further hikes may be needed.

“Central banks face a potentially difficult trade-off: The fight against inflation has in many countries not yet been won, and policy rates that are too low risk unanchoring inflation expectations and pushing long-term yields higher,” Daniel Bergvall, head of economic forecasting at Skandinaviska Enskilda Banken AB, wrote in a report.