FX.co ★ Japanese Shares Climb Despite Middle East Tensions

The Nikkei 225 Index climbed 1.26%, closing at 38,311, while the more comprehensive Topix Index advanced 0.75% to 2,777 on Monday. This movement reversed the losses from the prior session as investors seemed to minimize concerns about the growing geopolitical tensions in the Middle East. Over the weekend, ongoing clashes between Israel and Iran continued, with both nations targeting energy infrastructure, subsequently driving oil prices upward. The local stock market also saw gains due to a weaker yen, which enhances the profit projections for Japan's export-centric industries. Simultaneously, investor attention has shifted towards the forthcoming policy meeting of the Bank of Japan. The central bank is broadly anticipated to maintain interest rates at their current levels, as it evaluates the potential inflationary impact of rising oil prices and seeks further clarity on U.S. trade and tariff issues. Among notable performers were Advantest, which surged 9.6%, Metaplanet soaring 25.6%, Disco increasing by 4.3%, Mitsubishi Heavy Industries up by 2%, and IHI Corp rising 3.5%.