Japan’s Nikkei closes at record high, wiping out Iran war losses

Published Thu, Apr 16, 2026 · 04:06 PM

[TOKYO] Japan’s Nikkei 225 Stock Average ended the day at a new record high, erasing its losses from the Iran war on optimism the new peace talks may hasten the end to the conflict.

The blue-chip index rose 2.4 per cent to 59,518.34 as of market close in Tokyo on Thursday (Apr 16), above the all-time peak of 58,850.27 marked on Feb 27. The broader Topix climbed 1.2 per cent. Export-related stocks including the automotive, electronics and information technology sectors performed well, while real estate and food shares retreated.

Markets globally are within reach of recovering to pre-war levels. The S&P 500 and Nasdaq 100 indexes both ended at record highs. This comes as the US and Iran are considering a two-week ceasefire extension to allow more time to negotiate a deal, Bloomberg reported.

“The Nikkei’s move to fresh highs likely reflects that Japanese equities are shifting towards a ‘new normal’,” said Tsuyoshi Shimizu, chief market analyst at Asset Management One “Unless US-Iran negotiations break down, the Topix is also likely to reach new highs going forward.”

The Nikkei is just 0.8 per cent away from the 60,000 milestone eyed by investors. The gains come from the result of a years-long rally for Japanese equities, driven by corporate governance reforms, the yen’s weakness and AI tailwinds. The boom has produced some of the world’s top-performing chip stocks, and attracted historic inflows from foreign funds and activist investors.

Market participants are nevertheless monitoring the upcoming earnings season in Japan with an increasingly bleak outlook as oil remains elevated. Tensions remain high over the Strait of Hormuz, a critical waterway for oil and gas that’s been effectively shuttered since the start of the war.

That said, solid US earnings are supporting the market, said Takuro Hayashi, head of the investment research department at IwaiCosmo Securities While the previous rally was driven mainly by tech, gains are now broadening, he said. BLOOMBERG