Japan Stocks Surge on Mideast Ceasefire, Nikkei Hits High

Japanese stocks surged to a five-month high, with the Nikkei index closing up 1.65% at 39,584.58, as demand for semiconductor and AI-related shares led gains. Market sentiment improved following a ceasefire agreement between Israel and Iran, which reduced geopolitical risks and lowered oil prices, benefiting Japan’s energy-dependent economy. Key gainers included SoftBank Group and Advantest, while Renesas posted losses after delaying its long-term targets. The Topix index also advanced, primarily boosted by nonferrous metals and electric appliances, though energy stocks declined. Despite the positive rally, analysts warned that unresolved U.S. tariff threats and uncertainty surrounding Federal Reserve policy could still impact Japanese equities. Japan’s 10-year government bond yield rose as investors reduced safe-haven holdings amid the improved geopolitical climate.