HONG KONG - Asian equities displayed mixed results on Monday, with gains in Japan and South Korea offsetting losses elsewhere, as oil prices declined amid renewed hopes for advancement in talks between the US and Iran.

US stock futures pointed lower ahead of the session.

Tokyo's Nikkei 225 climbed 1.6 percent to 72,364.82 after hitting a fresh record peak of 72,831.73 intraday, supported by technology shares riding the wave of enthusiasm surrounding the worldwide artificial intelligence surge.

Japan's SoftBank Group, the global investment firm with heavy AI exposure, advanced 2.4 percent. Chip equipment producer Tokyo Electron gained 2.3 percent.

South Korea's Kospi increased 0.4 percent to 9,084.37, hovering close to all-time highs driven by AI-linked companies. Memory chip manufacturer SK Hynix jumped 4.7 percent.

"We are witnessing continued strength in the market today," noted Neil Newman, managing director and head of strategy at Astris Advisory Japan. He warned that the Japanese market may be "somewhat overextended" from an investor standpoint, "particularly given developments in the Middle East."

Hong Kong's Hang Seng fell 1 percent to 23,690.86, whereas the Shanghai Composite index edged 0.2 percent higher to 4,098.01.

Australia's S&P/ASX 200 slipped 0.1 percent to 8,822.80.

Taiwan's Taiex rose 2.8 percent. India's Sensex gained 0.6 percent.

Oil prices declined with progress reported in discussions aimed at a lasting conclusion to the Iran conflict. Brent crude, the global benchmark, dropped 1.4 percent to $79.42 per barrel. It stood near $70 before the conflict began in late February.

Senior-level discussions in Switzerland between the US and Iran wrapped up early Monday, with technical sessions planned for the remainder of the week. Although Iran indicated the Strait of Hormuz, a vital route for energy shipments, faced renewed closure over the weekend, the US maintained that vessel traffic persisted.

"Progress toward a lasting agreement faces hurdles, carrying genuine potential for renewed tensions," ING commodities strategists Warren Patterson and Ewa Manthey stated in a Monday note.

US investors are also watching May's personal consumption expenditures price index, the Federal Reserve's favored inflation measure, scheduled for release Thursday.

Elsewhere, the US dollar strengthened to 161.68 Japanese yen from 161.22 yen. The euro traded at $1.1454, down from $1.1473.

Associated Press senior producer Mayuko Ono in Tokyo contributed to this report.