Nikkei 225 stock average tops 65,000 for first time

Japan's benchmark Nikkei 225 index rose above 65,000 for the first time on May 25 as expectations grew that a deal might be reached to end the military conflict between the United States and Iran.

The Nikkei 225 index on the Tokyo Stock Exchange crossed the 65,000 level for the first time during trading on May 25.

Market participants pointed to growing expectations of a deal to resolve the military conflict between the United States and Iran as a factor supporting investor sentiment.

The Bank of Japan's monetary policy and domestic economic indicators continue to influence stock price movements.

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Tokyo stocks plunged on March 9, 2026, as surging oil prices fueled by escalating Middle East tensions rattled investors. The Nikkei 225 average fell 5.2% to close at 52,728.72, after dipping as much as 7.6% intraday. Fears of inflation and economic slowdown intensified amid the U.S.-Israeli conflict with Iran.

Japan's Nikkei 225 Stock Average surged 5.6 percent to close at a record 62,833.84 on optimism about a potential U.S.-Iran agreement.

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Japan's Nikkei share average briefly topped 60,000 on Thursday before profit-taking reversed the gains, closing 0.75% lower at 59,140.23 after hitting a record high of 60,013.98. Geopolitical uncertainties in the Middle East weighed on sentiment amid rising oil prices. U.S. President Donald Trump's announcement extending the ceasefire with Iran supported early rises, though Iranian officials rejected any agreement.

U.S. and Israeli forces attacked Iran over the weekend in a massive assault that killed Ayatollah Ali Khamenei, the nation's supreme leader for nearly four decades. This triggered retaliatory strikes in the Middle East, prompting Japanese police to bolster security at U.S. and Israel-related facilities. Stock markets in Tokyo opened lower, and Bank of Japan Deputy Governor Ryozo Himino stressed the need to monitor the situation.

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Indian stock markets rose more than 1 percent on Monday as the Nifty index crossed back above 24,000. The gains followed positive global signals including hopes for a US-Iran deal and lower oil prices.

South Korean stocks extended gains for a fourth session on May 8, closing at a fresh record high of 7,498 despite renewed tensions in the Middle East. President Donald Trump said the ceasefire remained in effect after U.S. and Iranian forces exchanged fire overnight.

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