Nikkei 225 Tops 69,000 as Trump Announces Iran Deal
The nikkei 225 closed above 69,000 for the first time on Monday, jumping 3,297.46 points, or 4.99%, to 69,317.50 as Tokyo stocks attracted buying almost across the board from the start. The move came after U.S. President Donald Trump said a deal had been reached to end the conflict between the United States and Iran.
69,317.50 on Monday
69,317.50 was the close that reset the benchmark’s ceiling. The Nikkei 225 posted the second-largest daily point gain on record, while the broader Topix rose 117.64 points, or 3.03%, to 3,999.60 and also finished at a record high. For investors in Japanese equities, the day delivered a rare broad advance rather than a narrow rally in a few names.
Trump's June 19 Strait signal
June 19 became the next marker after Trump said in a social media post that the Strait of Hormuz would open once the deal is signed. Kazuhiro Sasaki, head of research at Phillip Securities Japan, said investors were taking the announcement to mean there was no need to worry about U.S.-Iran tensions flaring up again. He also said the market seemed to be pricing in the reopening of the Strait of Hormuz.
More than 90% of Japan’s oil imports came from the Middle East before the war, so crude prices matter quickly for corporate costs and the wider economy. Crude oil futures prices plunged on the news of the deal, and another Japanese securities firm official said the outlook for the global economy and corporate earnings will likely improve if the blockade is lifted. That leaves the market with a direct test: lower energy costs if the route stays open, or a reversal if the agreement slips.
Tokyo eyes 70,000 Tuesday
70,000 is now the level another brokerage firm official said the Nikkei average may reach on Tuesday. The move puts pressure on traders to decide whether Monday’s record close was a one-day relief rally or the start of a higher trading range, with the Strait of Hormuz and the June 19 signing date still carrying the weight of the next market move.
