U.S.-Iran Peace Agreement Boosts Japanese Stocks, Nikkei Nears Record High

On June 15, citizens in Tokyo pass by an electronic board displaying the Nikkei 225 average stock price. Photo: AFP/Yonhap — On June 15, citizens in Tokyo pass by an electronic board displaying the Nikkei 225 average stock price. [Photo: AFP/Yonhap]

On June 15, the Nikkei 225, Japan's benchmark stock index, surged to nearly 70,000 points, reaching a record high following news of a peace agreement between the United States and Iran.
According to the Nihon Keizai Shimbun (Nikkei), the Nikkei closed at 69,317.50, up 3,297 yen (4.99%) from the previous trading day, marking the second-largest increase in history.
The broader TOPIX index also hit a record high during the day, peaking at 4,027.15 before closing at 3,999.60, a 3.03% increase from the prior session.
Analysts attributed the rise to a decrease in geopolitical risks following the U.S.-Iran agreement, which led to increased buying across various sectors, including artificial intelligence (AI) and semiconductors.
The easing of geopolitical tensions also accelerated the AI rally. Tokyo Electron saw its stock rise by nearly 10%, reaching an all-time high since its listing. SoftBank Group climbed 13%, while Ibiden rose 19%, Advantest increased by 8%, and Kioxia Holdings gained 12%. Stocks related to multilayer ceramic capacitors (MLCC) also saw significant buying, with Murata Manufacturing hitting its upper price limit and Daiyo Yuden rising 24%.
Investors also focused on stocks that had previously lagged during the market uptrend. Buying interest spread to construction, aviation, chemical, and automotive sectors, which had been affected by rising oil prices and supply chain concerns.
In the construction sector, Daisei Construction rose by 14% at one point, while Kajima gained 12%. Airline stocks, including Japan Airlines (JAL) and ANA Holdings, also performed strongly. The opening of the Strait of Hormuz alleviated supply chain worries, benefiting chemical companies like Mitsubishi Chemical Group and Mitsui Chemicals, as well as automotive firms like Toyota.
The Nikkei reported that a bullish sentiment is prevailing in the market, with many investors anticipating further gains as the index approaches the 70,000 mark.
Takehiko Masuzawa, head of equity trading at Phillip Securities, noted, "As concerns over oil prices and supply chains diminish, there is a sense of urgency among investors to capitalize on the rising market."

* This article has been translated by AI.