Japanese Shares Climb Despite Middle East Tensions

The Nikkei 225 Index rose 0.9% to above 38,000 while the broader Topix Index gained 0.8% to 2,778 on Monday, reversing losses from the previous session as investors appeared to downplay escalating geopolitical risks in the Middle East. Clashes between Israel and Iran continued over the weekend, with both sides targeting energy infrastructure and pushing oil prices higher.

Iran also threatened to close the Strait of Hormuz, a vital artery for global oil shipments, adding to market uncertainty.

Despite the global tensions, domestic focus turned to the Bank of Japan’s upcoming policy meeting.

The central bank is widely expected to leave interest rates unchanged as it assesses the potential inflationary effects of rising oil prices and awaits further clarity on US trade and tariff developments.

Notable gainers included Advantest (+3.7%), Disco (+2.1%), Mitsubishi Heavy Industries (+2.7%), Nintendo (+2.0%), and SoftBank Group (+1.2%).