FX.co ★ Japanese Shares Climb Despite Middle East Tensions

The Nikkei 225 Index climbed 0.9% to exceed 38,000, while the wider Topix Index increased by 0.8% to reach 2,778 on Monday. This upswing reversed the losses from the previous session, as investors seemed to minimize concerns about escalating geopolitical tensions in the Middle East. The conflict between Israel and Iran persisted over the weekend, with both countries targeting energy infrastructure, which in turn drove up oil prices. Iran's threat to close the Strait of Hormuz, a crucial channel for global oil transport, further contributed to market uncertainties. However, attention within Japan shifted towards the upcoming Bank of Japan policy meeting. The central bank is anticipated to maintain current interest rates, as it evaluates the inflationary impact of surging oil prices and monitors developments in US trade and tariff policies. Among the notable gainers were Advantest, which jumped 3.7%, Disco with a 2.1% rise, Mitsubishi Heavy Industries up by 2.7%, Nintendo increasing 2.0%, and SoftBank Group gaining 1.2%.