Nikkei surges to a record on US-Iran deal hopes

2026-06-15

Japan's Nikkei stock average surged on the Tokyo market on the 15th, rising 3,297 yen from the previous Friday to a record 69,317 yen. It gained 5.0%. Reports that the United States and Iran had agreed to end hostilities drove oil prices lower and pushed down government bond yields, prompting buying in stocks as risk assets.

The gain was the second-largest on record

The Nikkei's rise was the second-largest on record, behind the 3,320-yen jump on May 7, when semiconductor-related stocks soared. During trading, it climbed more than 3,600 yen and at one point came close to the 70,000 milestone.

Buying broadened on a third straight gain

The Nikkei rose for a third consecutive day, taking its cumulative gain to 5,100 yen. Tomoya Kitaoka, chief equity strategist at Nomura Securities, said lower oil prices eased concerns about US interest rate hikes and that artificial intelligence, or AI, related shares were being bought. He said money was also flowing into cyclical sectors that had been weighed down by Middle East tensions, describing the market as one where investors were 'taking the best of both worlds'.

Funds also moved into cyclical shares

On individual stocks, Toyota Motor rose 5%, while Japan Airlines gained 8% as lower fuel costs from cheaper oil provided a tailwind. Airline shares also advanced sharply. On the Tokyo Stock Exchange Prime Market, about 70% of all shares rose.

SpaceX listing also supported sentiment

On the 12th, US space company SpaceX made its stock market debut, and its closing price on the first day exceeded its offer price. The smooth start to the giant listing, which raised 75 billion dollars, or about 12 trillion yen, also helped improve investor sentiment. Rie Nishihara, chief equity strategist at JPMorgan Securities, said the market as a whole had tilted toward risk appetite after the SpaceX listing passed without incident.

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