Japan’s Nikkei has surged past 71,000 for the first time history as global investors cheer US-Iran singing the memorandum of understanding to end the West Asia war. Nikkei surged at opening, and during intra-day trade added over 1,400 points, or 2 percent at one point. Tech and AI, chip-related stocks surged on back of strong demand and investor interest.
opened mixed, with South Korea’s Kospi and Japan’s Nikkei 225 jumping to fresh record highs. Experts believe the US-Iran peace deal agreement will help boost sentiment, earnings not just for Asian markets but for global markets across the board. However some traders remain cautious and are apprehensive on just how long the world will witness peace.
While Japan’s stock market has witnessed one record high after another, economic pressures remain. Japan has witnessed a trade deficit of around 2.34 billion dollars in May, which is its first deficit in four months. Japan’s crude oil imports fell sharply, dropping over 57 percent in volume amid the West Asia conflict. Meanwhile, exports rose 17.0 percent to 9.51 trillion yen on robust demand for semiconductor and other electronic parts as well as motor vehicles. On the other hand, imports surged 12.5 percent from a year earlier to 9.89 trillion yen.
Japan has boosted efforts to get fuel from alternative sources, including the United States, since the US-Israeli attacks on Iran that began on February 28, 2026. Crude oil imports from the United States increased 24 percent.
acknowleged that higher crude oil rates were putting pressure on economic activity. However, growth was still supported by strong corporate profits, along with improving employment and income conditions. The Bank of Japan also said the risk of a sharp economic slowdown has eased, helped by government measures to reduce household energy costs.