Nikkei 225 Hits Record High as Strait of Hormuz Hopes Boost Investor Sentiment

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Japan's Nikkei 225 breached 64,000 for the first time Monday, hitting a record high in holiday-thinned Asia trading after reports that the crucial Strait of Hormuz may reopen soon pushed oil prices down and lifted investor sentiment.

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."

Oil prices fell more than 5% after Trump's comments, easing pressure on investors. 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 West Texas Intermediate futures for July was 4.52% lower at $92.23 per barrel in early Asia trade. Brent crude futures for July fell 4.51% at $98.87 per barrel.

Japan's Nikkei 225 rose 1.48% to hit a record of 64,278.49, while the Topix added 0.65%.

Australia's S&P/ASX 200 was flat.

Markets in Hong Kong and South Korea are closed for public holidays. U.S. markets will also be closed Monday for Memorial Day.

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During Friday's regular session, the Dow Jones Industrial Average gained 294.04 points, or 0.58%, to end at 50,579.70. The 30-stock index hit an intraday all-time high and posted another record close.

The S&P 500 rose 0.37% to settle at 7,473.47. The Nasdaq Composite climbed 0.19%, ending at 26,343.97.

— CNBC's Spencer Kimball, Liz Napolitano and Yun Li contributed to this report.