Japan Market Daily | Kabutaro & Friends

On May 25, 2026, the Nikkei 225 extended its rally for a third consecutive session, surging 1,819.12 yen to close at a fresh historic high of 65,158.19 yen, breaching the 65,000 threshold for the first time. Market sentiment was heavily boosted by growing optimism over an imminent U.S.-Iran ceasefire agreement, which caused benchmark crude oil futures to plummet into the 90-dollar range per barrel, easing global inflationary and interest rate anxieties. Additionally, solid corporate earnings supported by strong AI demand—confirmed as major companies in Japan and the U.S. wrapped up their fiscal announcements—fueled the broad-based market advance. In other markets, the USD/JPY cross hovered just below the 159 level, domestic long-term interest rates paused their upward trend, and the broader TOPIX also refreshed its record high for the first time in nearly two and a half months.