The Nikkei 225 Index rose 0.6% to move above 58,800, while the broader Topix Index advanced 0.8% to 3,790 on Monday, recovering losses from the previous session despite a renewed flare-up in US-Iran tensions. The United States seized an Iranian-flagged cargo vessel in the Gulf of Oman, and Tehran responded by reasserting control over the Strait of Hormuz after Washington refused to lift its blockade on Iranian ports.
Persistent disruptions in this key shipping corridor have unleashed an unprecedented energy supply shock, amplifying inflationary pressures and posing a threat to global growth. Oil-importing economies such as Japan are seen as particularly vulnerable. Even so, Japanese equities had climbed to fresh record highs last week, buoyed by optimism over a potential peace agreement and renewed enthusiasm for artificial intelligence–related sectors.
Among the standout gainers were Lasertec (up 5.2%), SoftBank Group (1.9%), Fujikura (1.7%), Mitsubishi Heavy Industries (4.7%), and Keyence (2.1%).