FX.co ★ Japanese Shares Rise Despite Mideast Escalation

The Nikkei 225 Index rose 0.5% to above 53,370, while the broader Topix Index added 0.3% to 3,655 on Monday, marking a second consecutive session of gains for Japanese equities as investors assessed escalating tensions in the Middle East.

On Sunday, US President Donald Trump warned that the US could begin striking Iran’s power plants and other civilian infrastructure starting Tuesday if the Strait of Hormuz is not reopened. Tehran rejected the ultimatum and has so far kept the vital shipping channel effectively closed.

Japan remains highly exposed to disruptions in crude supplies due to its heavy dependence on oil imports from the Middle East. In response, the government has started releasing oil from strategic reserves and is seeking alternative energy sources to mitigate the impact of any prolonged supply shock.

Among individual stocks, notable gainers included Furukawa Electric (up 5.6%), SAKURA Internet (20.3%), Sumitomo Electric (4.4%), Lasertec (2.9%), and SoftBank Group (1.8%).