Japan's Nikkei Surpasses 65,000 for First Time on Iran Peace Optimism

Japan's Nikkei Surges Past 65,000 for First Time on Iran Peace Deal Hopes

Japan's benchmark Nikkei 225 index soared 2.71% to 65,055.68 in early Monday trading, crossing the 65,000 level for the first time. The broader Topix index climbed 1.5% to 3,950.91.

The rally was fueled by optimism that a deal to end the war in Iran is near. Over the weekend, U.S. President Donald Trump said Washington and Iran had "largely negotiated" a memorandum of understanding for a peace agreement, which would reopen the Strait of Hormuz for oil shipments.

Japan's heavy reliance on imported energy makes its economy vulnerable to oil price spikes. The nearly three-month conflict involving the U.S., Israel, and Iran had driven up crude costs. Renewed hopes for a resolution eased supply concerns, boosting demand for Japanese equities.

On the Nikkei, 139 stocks advanced against 86 decliners, reflecting broad-based gains. While uncertainties remain, investors seized on the positive signals, pushing the index to a historic milestone.