The Nikkei 225 Index jumped 2.7% to around 65,000 on Monday, while the broader Topix Index gained 1% to 3,930, with Japanese equities climbing to fresh record highs. The rally came as oil prices retreated amid signs that the US and Iran were moving closer to an agreement to reopen the Strait of Hormuz. A full reopening of this key shipping corridor would ease supply concerns for major Asian economies that rely heavily on Middle Eastern oil, while lower crude prices would help temper inflationary pressures and reduce the risk of further interest rate hikes.
Technology and artificial intelligence-related shares also provided strong support to the market. SoftBank Group has surged roughly 40% over the past three sessions following reports that two of its portfolio companies, OpenAI and SB Energy, are progressing toward initial public offerings in the US. Other notable tech gainers included Kioxia Holdings (+5.6%), Fujikura (+6.7%), Ibiden Co. (+7.3%), Advantest (+4.5%) and Lasertec (+10%).
