Asian stock markets traded mixed on Monday as oil prices surged more than 4% after U.S. President Donald Trump rejected Iran's response to the latest American ceasefire proposal aimed at ending the ongoing war.

Tokyo's Nikkei 225 fell 0.4% to 62,486.84 despite reaching a new intraday record above 63,300. SoftBank Group dropped more than 5%, while South Korea's Kospi gained 4.1% to 7,804.71, also hitting an all-time intraday high led by technology stocks including Samsung Electronics and SK Hynix. Hong Kong's Hang Seng declined 0.3%, while mainland China's Shanghai Composite rose 0.9% following data showing factory gate prices increased 2.8% in April.

Oil markets reacted sharply to geopolitical tensions, with Brent crude jumping 4.2% to $105.57 per barrel and U.S. benchmark crude rising 4.7% to $99.89 per barrel. Both benchmarks have risen significantly from around $70 per barrel before the conflict began in late February. Trump called Iran's Sunday response "TOTALLY UNACCEPTABLE" in a social media post.

The Strait of Hormuz, a critical waterway for global oil and gas transport, remains largely closed as the U.S. continues its naval blockade of Iranian ports. Analysts expect oil prices to remain elevated given the ongoing supply disruptions and geopolitical uncertainty.

The Iran conflict is expected to be discussed when Trump meets with Chinese President Xi Jinping later this week. The U.S. has been pressing China to use its economic influence with Iran to help reopen the strategic waterway and push for a peace agreement.

On Friday, Wall Street had closed at record highs, with the S&P 500 gaining 0.8% to 7,398.93 and the Nasdaq climbing 1.7% to 26,247.08, supported by better-than-expected U.S. employment data despite ongoing war-related economic pressures.