Japan Market Daily | Kabutaro & Friends

On May 18, 2026, global markets faced renewed inflation concerns as stalled U.S.-Iran negotiations and the prolonged blockade of the Strait of Hormuz pushed crude oil prices higher. Reflecting expectations of a prolonged hawkish policy path, sovereign bond yields rose sharply on both sides of the Atlantic. Following the previous weekend's sell-off in U.S. equities, the Tokyo market opened lower, with the Nikkei 225 extending its decline for a third consecutive session to close at 60,815 yen, down 593 yen. Rising domestic long-term interest rates heavily weighed on sentiment, causing the index to plunge by over 1000 yen at one point. In response to global resource volatility, Japan's Economy Minister Akazawa met with Brazil's Foreign Minister to strengthen bilateral economic ties and secure stable energy supplies, highlighting continued international efforts to reinforce resource security.