Nikkei index hits record high on U.S.-Iran agreement

Nikkei index hits record high on U.S.-Iran agreement
New Nikkei record

​Japan’s Nikkei index rose above 69,700 points for the first time. On Monday, it reached an intraday high of 69,705, gaining more than 5% amid a stock market rally after the announcement of a U.S.-Iran agreement to end the war.

According to TradingView, the index added about $465 billion in market value in one day. At the time of publication, Nikkei stood at around 69,300 points.

U.S.-Iran agreement supports stock markets

President Donald Trump’s announcement of an agreement to end the conflict boosted demand for equities. The deal provides for the end of the U.S. naval blockade of Iran and the reopening of the Strait of Hormuz, one of the key routes for oil shipments.

The document is expected to be signed in Switzerland on Friday. Oil prices fell after the news: West Texas Intermediate dropped by about 4.6%, while Brent declined by roughly 5%.

Stock markets and cryptocurrencies, by contrast, moved higher. U.S. equity futures rose sharply: contracts tied to the Dow Jones Industrial Average gained 342 points, or 0.7%. S&P 500 futures rose 0.9%, while Nasdaq 100 futures posted the strongest increase, climbing 1.4%.

Asian markets saw the biggest moves. South Korea’s KOSPI led the region with a 5.46% gain. Japan’s Topix rose 3.3%.

The digital asset market also joined the rally. Total crypto market capitalization increased by almost 2%, while Bitcoin (BTC) approached $66,000.

What Nikkei shows

The Nikkei 225 is Japan’s main stock market index. It includes 225 of the country’s largest and most actively traded companies, including Toyota, Sony, Nintendo, SoftBank, and other major corporations. Investors use it to assess the state of the Japanese market: when Nikkei rises, it usually points to stronger demand for Japanese stocks and a higher appetite for risk in the region.

But Nikkei matters beyond Japan. The Japanese market is closely linked to global capital flows, especially through the yen and the carry trade — a strategy in which investors borrow money in Japan at low rates and invest it in higher-yielding assets abroad. That is why a sharp rise or fall in Nikkei can reflect not only local expectations for Japanese companies, but also the broader investor mood toward stocks, commodities, cryptocurrencies, and other risk assets worldwide.

As a reminder, at the start of the year, the Nikkei 225 was below 54,000.

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