Japanese Stocks Rally on Optimism Over Iran Deal

2026-05-21 00:42 By Jam Kaimo Samonte 1 min. read

The Nikkei 225 Index jumped 3% to above 61,600 while the broader Topix Index gained 1.6% to 3,850 on Thursday, recovering losses from earlier in the week and tracking gains on Wall Street overnight amid hopes for an imminent peace deal between the US and Iran.

President Donald Trump said the US was in the final stages of negotiations with Iran, fueling hopes that the strategically important Strait of Hormuz could soon reopen.

The prospect of resumed shipping traffic triggered a sharp decline in oil prices, easing pressure on Japan’s import-dependent economy.

On the domestic front, data showed Japanese exports rose 14.8% in April, surpassing expectations on the back of solid demand from China, the US, ASEAN nations and the European Union.

Financial and technology shares spearheaded the rally, with gains from Mitsubishi UFJ (3.6%), Sumitomo Mitsui (4.2%), Mizuho Financial (4.7%), Advantest (4.1%) and Tokyo Electron (5%).



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Japanese Stocks Rally on Optimism Over Iran Deal
The Nikkei 225 Index jumped 3% to above 61,600 while the broader Topix Index gained 1.6% to 3,850 on Thursday, recovering losses from earlier in the week and tracking gains on Wall Street overnight amid hopes for an imminent peace deal between the US and Iran. President Donald Trump said the US was in the final stages of negotiations with Iran, fueling hopes that the strategically important Strait of Hormuz could soon reopen. The prospect of resumed shipping traffic triggered a sharp decline in oil prices, easing pressure on Japan’s import-dependent economy. On the domestic front, data showed Japanese exports rose 14.8% in April, surpassing expectations on the back of solid demand from China, the US, ASEAN nations and the European Union. Financial and technology shares spearheaded the rally, with gains from Mitsubishi UFJ (3.6%), Sumitomo Mitsui (4.2%), Mizuho Financial (4.7%), Advantest (4.1%) and Tokyo Electron (5%).
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The Nikkei 225 Index fell 807 points or 1.33 percent on Wednesday to close at 59744 points. Leading the losses are Okuma (-9.32%), Fujikura (-8.54%) and Mitsui Engineering & Shipbuilding (-6.55%).
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Japanese Shares Sink as Bond Yields Surge
Japan’s Nikkei 225 fell 1.23% to close at 59,804 on Wednesday, while the broader TOPIX declined 1.53% to 3,792, with both benchmarks hitting multi-week lows as they tracked overnight losses on Wall Street. The selloff came as global bond yields climbed sharply amid mounting inflation concerns tied to the Iran war. Japan’s benchmark 10-year government bond yield also surged to 2.8%, its highest level since September 1996, after stronger-than-expected economic growth data reinforced expectations for further monetary tightening. Markets are increasingly pricing in a potential interest rate hike from the Bank of Japan as early as next month following hawkish remarks from policymakers. Investors are also awaiting Japan’s latest trade and inflation data for additional clues on the economy’s strength. Technology and AI-related shares led the decline, with steep losses from SoftBank Group (-6%), Fujikura (-8.5%), Tokyo Electron (-2.3%) and Lasertec (-1.1%).
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