Snapshot: Nikkei 225 surged 1.65% to a record close of 71,053, driven by relief over Japan’s heavy reliance on Middle Eastern energy imports following an interim agreement to reopen the Strait of Hormuz. This geopolitical breakthrough sparked a massive bid in domestic heavyweights, with tech and financial sectors leading the charge and shrug off overnight Wall Street weakness.
- The prospect of lower imported fuel costs propelled a broad-based rally across Tokyo cash, sending Mitsubishi UFJ up 3.1% and Lasertec surging 7.1% as the index cleared the psychological 71,000 barrier.
- Watch the market reaction to US macro data at 08:30 ET; while any soft print could pressure USD/JPY, the massive 4.48% drop in WTI crude to $84.65 provides a strong structural tailwind for Japanese corporate margins.
Bias into NY: We favor buying dips in Nikkei futures targeting 71,500, with support expected at 70,800 as cheap energy inputs structurally re-rate Japanese equities alongside a softening USD Broad Index at 119.50.