Nikkei Doubled to 65,000 Adding $235B as Trump Says Iran Deal Is Almost Done

Key Takeaways

• Japan’s Nikkei 225 hit 65,000 for the first time ever, adding $235B in one session as Trump said the Hormuz MOU is largely negotiated
• The Nikkei is up 70% in the last 12 months and has more than doubled since 2022 as Brent fell 5% below $100 and Nasdaq futures hit a record
• JPMorgan targets Nikkei 70,000 by year-end as SoftBank jumped 5%, Advantest 5%, and Tokyo Electron 3% in the historic Monday session

Japan’s Nikkei 225 was trading near 28,000 back in 2022. On Monday, the index crossed 65,000 for the first time ever. It extended one of the strongest rallies in the global Japanese stock market in recent years. Investors moved back into equities after signs that tensions around the Strait of Hormuz could ease surfaced. Oil prices today are sharply lower and lifting risk appetite across Asia. The move also pushed Nasdaq futures and US equity futures to fresh highs before Wall Street even reopened after Memorial Day.

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Why One Trump Post Added $235B to Japanese Stocks and Sent Oil Below $100

The rally picked up after Donald Trump posted over the weekend that negotiations tied to a Hormuz memorandum of understanding were “largely negotiated.” Markets took that as a sign that disruptions around Middle East energy flows may not worsen further.

Brent crude fell more than 6%, slipping below $100 a barrel for the first time in months. Meanwhile, WTI crude also dropped sharply. Lower energy prices helped ease inflation concerns that had been hanging over global equities for weeks.

Japan’s export-heavy market reacted quickly. SoftBank rose more than 5%, Advantest gained close to 5%, and Tokyo Electron climbed around 3% as chip and AI-related shares led the move higher. The Topix index also reached a fresh all-time high. According to reports, Nikkei’s record high added nearly ¥34 trillion, or about $235 billion, in market value in a single session. A bank-affiliated brokerage house official said,

“Buying by overseas short-term investment funds and individual investors trading on margin is concentrated in heavyweight Nikkei components, including Kioxia Holdings and SoftBank Group, as well as in Nikkei 225 futures.”

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Futures Markets in the US Also Moved Higher

The optimism was not limited to Tokyo. Nasdaq 100 futures hit a record high during Asian trading hours. Meanwhile, S&P 500 futures reached record levels, reflecting growing confidence that lower oil prices could reduce pressure on central banks.

JPMorgan analysts now expect the Nikkei 225 to reach 70,000 by the end of the year after the index gained roughly 70% over the last 12 months.

Despite this, traders remain cautious about how durable the rally could be. Trump later said there was “no rush” to finalize an agreement with Iran. But analysts noted that any setback around the Strait of Hormuz could quickly reverse sentiment.

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