Japanese Stocks Hit Records After US-Iran Peace Deal
Japanese stocks rallied on Thursday, with the Nikkei 225 rising 1.8% to above 71,000 and the broader Topix Index advancing 1.6% to 4,078. Both benchmarks reached fresh record highs after US President Donald Trump signed an interim agreement to end the conflict with Iran and reopen the Strait of Hormuz.
The deal eased concerns over Japan’s economy, which depends heavily on energy imports from the Middle East. A reopening of Hormuz is seen as a potential stabilizing factor for energy supply, helping reduce cost pressure for Japanese companies and consumers.
Japanese equities also advanced despite an overnight selloff on Wall Street after the Federal Reserve signaled growing support for a rate hike this year. This suggests domestic sentiment in Japan was more strongly driven by lower energy risks and optimism over the recovery of Middle East trade routes.
Financial stocks led the rally. Mitsubishi UFJ Financial Group rose 2.8%, Sumitomo Mitsui Financial Group gained 3.7%, and Mizuho Financial Group added 2.7%. The move reflected expectations that economic stability and higher yield conditions could support earnings prospects for banks.
Technology shares also moved higher. Kioxia Holdings gained 3%, Tokyo Electron rose 3.5%, and SoftBank Group climbed 4.5%. The gains showed that buying interest was not limited to financials, but also extended to growth-oriented stocks.
For Japan’s market, the main transmission runs through energy, inflation, and risk sentiment. If oil flows through Hormuz normalize, energy import costs could ease, supporting inflation stability and improving the outlook for corporate margins.
Market focus now turns to the implementation of the Hormuz reopening, oil-price movements, the yen, and investor reaction to the Fed’s hawkish signal. As long as energy risks continue to decline, Japanese equities may remain supported, although pressure from global yields still needs to be monitored.
Source : Newsmaker.id
