Japan’s Nikkei 225 tops 65,000 for first time as oil falls on Hormuz reopening hopes
Japan’s Nikkei 225 breached 64,000 for the first time Monday as a sharp decline in oil prices lifted risk sentiment in holiday-thinned trading.
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Pedestrians walk through a train station on August 05, 2024 in Tokyo, Japan.
Tomohiro Ohsumi | Getty Images News | Getty Images
Japan's Nikkei 225 breached 65,000 for the first time Monday, hitting a record high in holiday-thinned Asia trading after reports that the crucial Strait of Hormuz may reopen soon pushed oil prices down and lifted investor sentiment.
President Donald Trump said in a Truth Social post that negotiations with Iran were "proceeding in an orderly and constructive manner," adding that he had told his representatives "not to rush into a deal in that time is on [their] side."
Oil prices fell more than 5% after Trump's comments, easing pressure on investors. Prices had climbed sharply after the Trump administration imposed a blockade on Iranian ports and Tehran effectively closed the Strait of Hormuz, one of the world's most important energy waterways.
The West Texas Intermediate futures for July was 4.52% lower at $92.23 per barrel in early Asia trade. Brent crude futures for July fell 4.51% at $98.87 per barrel.
Japan's Nikkei 225 rose 2.75% to hit a record of 65,081.96, while the Topix added 0.65%.
Australia's S&P/ASX 200 was flat.
Markets in Hong Kong and South Korea are closed for public holidays. U.S. markets will also be closed Monday for Memorial Day.
