Japanese Shares Surge to Fresh Record Highs

The Nikkei 225 Index jumped nearly 5% to above 69,000 on Monday, setting new record highs as investors cheered a breakthrough agreement to end the conflict between the US and Iran that would reopen the Strait of Hormuz. Oil prices dropped to a two-month low following the announcement, easing inflation concerns and reducing cost pressures for major energy importers such as Japan. Meanwhile, the Bank of Japan is widely expected to raise interest rates this week to contain inflation and support the yen. Broader market sentiment was also lifted by SpaceX’s strong debut on Friday, reinforcing investor appetite for high-profile growth stories. Technology and AI-related shares led the advance, with Kioxia up 7.5%, Murata Manufacturing gaining 14.3%, SoftBank Group rising 9.4%, Advantest adding 7.1%, and Tokyo Electron climbing 7.5%.

The Nikkei 225 Index gained 1860 points or 2.90 percent on Friday to close at 66078 points. Gains were led by Mitsui Mining & Smelting (16.98%), Sumitomo Metal Mining (11.49%) and Lasertec Corp (10.35%).

The Nikkei 225 Index jumped 2.81% to close at 66,020, while the broader Topix Index climbed 1.35% to 3,882 on Friday, as Japanese equities rebounded from earlier-week losses after President Donald Trump said a peace agreement with Iran could be signed as soon as this weekend in Europe, sending oil prices sharply lower. Japan's economy remains vulnerable to geopolitical developments in the Middle East due to its heavy dependence on oil imports from the region. Investor sentiment was also lifted ahead of SpaceX's Wall Street debut, with the company expected to raise about $75 billion at a projected market valuation of $1.78 trillion. Technology and AI-related stocks led the gains, with Kioxia Holdings rising 7.6%, Tokyo Electron surging 7.3%, SoftBank Group adding 1.5% and Advantest advancing 8.5%. Financial and consumer shares also strengthened, including Sumitomo Mitsui up 3.3%, Mizuho Financial gaining 2.3 and Fast Retailing rising 2.6%.