Japan Market Daily | Kabutaro & Friends

On April 21, 2026, the Nikkei 225 rose for a second consecutive session to close at 59,349 yen, up 524 yen. Market sentiment was buoyed by expectations of renewed talks between the U.S. and Iran, briefly pushing the index above the 59,000 mark. While AI and semiconductor stocks led the gains, the broader TOPIX index declined as investors remained wary of President Trump's skeptical stance on extending the ceasefire and reports of the U.S. seizing an Iranian cargo ship. In its Financial System Report released the same day, the Bank of Japan warned of complex risks involving surging oil prices and rising interest rates. The yen showed slight strength due to intervention caution but remained volatile near 159 against the dollar, pressured by expectations that U.S. and European central banks will maintain high rates.