Snapshot: The Nikkei 225 closed up 1.65% at a record high of 71,053, driven by domestic relief after an interim deal reopened the Strait of Hormuz, easing existential energy security concerns for Japan’s import-dependent economy. This domestic boost spurred a major bid in local financials and tech, shrugging off overnight weakness in New York. A sharp retreat in crude oil prices acts as a massive tailwind for Japanese corporate margins into the NY open.
- Domestic market strength is exceptionally broad, with banking giants like Sumitomo Mitsui (+4.3%) and semiconductor names like Lasertec (+7.1%) leading the charge above the psychological 71,000 handle.
- Watch the 08:30 ET US data print; any aggressive moves in the US 10Y yield from its current 4.43% level could spill over into the USDJPY cross, altering the near-term setup for export-heavy cash.
Bias into NY: We remain structurally bullish, targeting a consolidation above 71,000 as the removal of Middle East energy risks provides a durable fundamental floor for Japanese equities, even if a rising VIX at 18.44 caps immediate upside.