Japan Market Daily | Kabutaro & Friends

On June 12, 2026, the Nikkei 225 rallied sharply for a second consecutive session, closing up 1,802.77 yen at 66,020.04 yen. Following a strong performance on Wall Street where the Dow Jones surged 929 points and the Nasdaq advanced, buying dominated the Tokyo market from early trading. Investor sentiment improved significantly on optimism that the Middle East conflict is easing, triggered by reports that a final agreement between the U.S. and Iran to end hostilities is close, which pushed crude oil prices lower and prompted a major rebound in AI and semiconductor-related shares, briefly lifting the benchmark index back above the 67,000 threshold. In the FX market, however, the yen remained weak, trading in the mid-160 range around 160.50-51 yen per dollar, as lingering caution over the lack of a definitive breakthrough in the peace talks sustained some safe-haven demand for the greenback.