The Japanese equity market has advanced over the last seven sessions, surpassing a gain of 6,950 points or 10.9% to reach a record closing high. The Nikkei 225 now sits just above the 71,250-point threshold, with analysts predicting that investors may secure gains on Monday.
Global sentiment toward Asian equities is tentative following the repeated closure of the Strait of Hormuz by Iran over the weekend. European shares traded lower and U.S. markets were closed for the Juneteenth holiday, while Asian traders anticipate a muted opening.
Friday’s session saw the Nikkei finish marginally higher, with the index rising 196.57 points (0.28%) to close at 71,250.06. Trading ranged between 70,517.98 and 71,952.99.
Key performers included a 4.43% drop in Nissan Motor, a 2.74% decline for Mazda Motor, a 0.61% fall in Toyota Motor, and a 0.11% decrease in Honda Motor. Other notable movements were SoftBank Group down 1.08%, Mitsubishi UFJ Financial Group down 2.85%, Mizuho Financial down 4.42%, Sumitomo Mitsui Financial down 3.66%, Mitsubishi Electric down 0.08%, Sony Group down 3.38%, Panasonic Holdings up 2.65%, and Hitachi down 0.75%.
European indices posted mixed results, with the UK’s FTSE 100 falling 0.35%, Germany’s DAX slipping 0.16%, France’s CAC 40 declining 0.55%, and Switzerland’s SMI edging up 0.06%.
Market weakness stems from uncertainty over a lasting peace in the Middle East, following the abrupt cancellation of talks between the United States and Iran in Switzerland. Escalations between Israel and Hezbollah, coupled with Iran’s accusation that the U.S. breached the agreement, have heightened geopolitical risks.
Oil prices collapsed last week amid reports the Strait of Hormuz had reopened, falling more than 10% to below $80. However, Iran’s re-closure of the strait over the weekend may support a rebound in crude prices this week.
