FX.co ★ Japanese Shares Rebound as Oil Retreats

The Nikkei 225 Index surged 2.8% to climb back above 54,000, while the broader Topix Index advanced 2% to 3,650 on Tuesday, erasing losses from the previous session as oil prices retreated below $100 a barrel and eased stagflation concerns. The rebound followed signals from US President Donald Trump that the war with Iran could soon come to an end, alongside plans aimed at stabilizing oil prices. In addition, G7 finance ministers stated they “stand ready” to tap strategic petroleum reserves if required. Global equities had recently come under pressure amid uncertainty surrounding the Iran conflict, with soaring oil prices fueling worries about the economic outlook and a potential resurgence of inflation. In Japan, fourth-quarter GDP growth was revised up to 0.3% from the initially reported 0.1%, driven by robust domestic demand. Technology shares led the recovery, with notable gains in Kioxia Holdings (11%), Fujikura (10%), and Advantest (5.5%), while major financial, consumer, and defense stocks also moved higher.