Japan Market Daily | Kabutaro & Friends

On May 5, 2026, the global economy was dominated by escalating military clashes in the Strait of Hormuz and subsequent market volatility. Following reports that the U.S. Central Command engaged and sank Iranian vessels to initiate an operation to reopen the strait, the Dow Jones Industrial Average plunged by 557 dollars. Crude oil prices surged over 6 percent, reigniting global anxieties regarding energy supply chains. In currency markets, the yen spiked to the 155 range against the dollar, driven by safe-haven buying and caution over potential interventions by Japanese authorities. In the corporate sector, while GlobalFoundries reported Q1 earnings that exceeded market expectations, supporting some AI-related stocks, overall investor sentiment remained dampened by geopolitical risks. Additionally, Japan and Australia issued a joint declaration to secure critical minerals, highlighting an urgent global shift toward strengthening resource security.