Nikkei 225 Vaults Past 65,000 for First Time as Traders Bet on Impending Mid-East Peac

Japan’s benchmark Nikkei 225 index shattered record highs on Monday, crossing the historic 65,000-point milestone for the first time.

 

The surge was fueled by optimistic interpretations of weekend commentary from US President Donald Trump, which led market participants to bet that the US-Iran conflict is nearing a resolution and that the strategically vital Strait of Hormuz could soon reopen.

 

The Nikkei 225 opened 0.5% higher before rapidly accelerating to post a gain of over 3%, clearing both the 64,000 and 65,000 thresholds in rapid succession. At press time, the index was up 3.01% to trade at 65,243.98, after peaking at an intraday high of 65,257.60.

 

Among heavyweights, SoftBank Group climbed over 5%, Tokyo Electron gained more than 3%, and semiconductor testing specialist Advantest surged nearly 6%.

 

The moves extension a broader tech rally; SoftBank had already added $61 billion to its market capitalization over Thursday and Friday, jumping 20% and 11.9% respectively, on the back of Nvidia's blowout earnings print.

 

Concurrently, the broader Topix index advanced 1.54% to 3,952.51.

 

Trading volumes across Asia remained relatively thin due to regional market holidays, with both Hong Kong and South Korean exchanges closed for Buddha's Birthday. US equity markets are also closed on Monday in observance of Memorial Day.

 

President Trump stated on Saturday that the US and Iran had "essentially agreed" on a peace framework that would reopen the Strait of Hormuz, with a formal announcement expected shortly.

 

Trump followed up on Sunday via Truth Social, noting that negotiations were moving forward "in an orderly and constructive manner," though he added he had instructed US representatives not to rush because "time is on our side."

 

Hours later, he noted in a subsequent post that while any finalized deal would be "good and proper," the agreement was "not completely ironed out yet."

 

Despite the characteristically shifting rhetoric from the administration, global markets chose to focus on the broader trajectory toward de-escalation, pricing in the end of a conflict that has severely disrupted international energy markets and pinned US inflation at multi-year highs.