Japan Market Daily | Kabutaro & Friends

On April 27, 2026, the Nikkei 225 surged to close at 60,537 yen, up 821 yen from the previous Friday, marking its first-ever finish above the 60,000 threshold. The rally was fueled by reports that Iran proposed a new ceasefire deal to the U.S. via Pakistan, raising hopes for the reopening of the Strait of Hormuz and a de-escalation of Middle East tensions. This geopolitical optimism triggered a risk-on sentiment, driving heavy buying in semiconductor and "Physical AI" stocks like Fanuc following its strong earnings report. In currency markets, the yen hovered in the low 159 range against the dollar; while intervention fears limited further depreciation, expectations of prolonged high U.S. interest rates provided support for the dollar. Anticipation that the Bank of Japan would maintain its current monetary policy at its upcoming meeting also underpinned market strength.