Nikkei 225 Climbs as Ceasefire Cools Energy Fears

Japanese stocks rallied strongly after a two-week ceasefire and the temporary reopening of the Strait of Hormuz eased immediate concern over energy disruption. The Nikkei 225 rose 4.96% to 56,078.83 in the morning session, while the broader chart reading showed 56,222.87, up 2,280.82 points or 4.23%. The move reflected a broad relief rally rather than a narrow rebound, with lower oil improving the outlook for an economy that remains heavily dependent on imported energy.

A fall in crude reduces pressure on company margins, softens imported inflation and helps ease the strain on household spending. With oil prices pulling back after the ceasefire announcement, investors moved back into cyclical and growth-sensitive sectors that had been under pressure during the recent risk-off phase.

The gains were broad, but leadership still came from the groups most exposed to a cleaner macro backdrop. Exporters advanced as lower oil improved the wider outlook, financials rose as immediate stagflation fears faded, and chip stocks led the sharpest gains as traders rotated back into growth.

SoftBank Group rose more than 6%, Fast Retailing gained almost 5%, Toyota climbed almost 4%, and Honda added more than 2%. In technology, Advantest jumped more than 10%, Screen Holdings surged almost 8%, and Tokyo Electron advanced almost 9%. Among the banks, Sumitomo Mitsui Financial and Mizuho Financial rose more than 4%, while Mitsubishi UFJ Financial gained almost 3%.

Domestic data added another layer of support. Japan recorded a 3.933 trillion yen current account surplus in February, above the 3.549 trillion yen forecast. Exports rose 2.8%, imports increased 9.7%, and the trade balance showed a 267.6 billion yen surplus. Those figures suggested that Japan’s external position was holding up better than expected, which gave investors more confidence as the energy backdrop improved.

From technical perspective, Nikkei is now trading near 56,223, after bouncing sharply from the recent pullback that followed rejection at the 60,077 high. Price has moved back above the 5-day moving average at 54,076, the 10-day at 53,259, and the 20-day at 53,338, with all three beginning to turn higher. 

Discover how lower oil prices, stronger current account data and renewed risk appetite are shaping the Nikkei’s next move in this article.