Snapshot: The Nikkei 225 surged 1.65% to a fresh record high of 71,053, powered by massive domestic relief after an interim agreement to reopen the Strait of Hormuz threw a vital lifeline to Japan’s energy-import-dependent economy. This structural domestic tailwind triggered aggressive cash accumulation across Tokyo, allowing Japanese equities to easily shrug off overnight Wall Street weakness and hawkish Federal Reserve rate signals.
- Financials led the cash session with SMFG up 4.3% and MUFG up 3.1%, confirming heavy domestic sector rotation as local energy-cost anxieties evaporate.
- Watch high-beta tech giants like Lasertec (+7.1%) and Tokyo Electron (+4.7%) which remain vulnerable to intraday profit-taking if US 10-year yields (currently at 4.43%) back up on the upcoming 08:30 ET data print.
Bias into NY: We are structurally bullish into the New York crossover, targeting holding the breakout above 71,000; the elimination of the Middle East energy threat anchors Japan’s macro outlook, easily neutralizing secondary US yield pressures.