Japan Investors Reacted to Strait of Hormuz Developments Ahead of BoJ Rate Decisions

Akira Ito
17 Mar, 2026
Tokyo

Stocks in Tokyo edged higher for the second successive session amid easing worries over the passage of energy products through the Strait of Hormuz. 

The Nikkei 225 Stock Average inched higher 0.3%, and the broader Topix Index advanced 0.8% as easing oil prices lifted investor sentiment. 

Crude oil prices eased in early trading as several tankers safely navigated critical thoroughfares, supporting the expectations that energy product exports may return to normal levels sooner than expected.

Last week, the International Energy Agency, a group of 32 wealthy nations, announced its plan to release historic quantities of crude oil from its reserves, arresting the sharp escalation in oil prices.

Over the last two weeks, oil shock has gripped financial markets, and Asian markets have led the decline in global markets. Since the start of Israel's war on Iran, benchmark indexes in Japan have plunged 9%, in South Korea dropped 12%, and in India decreased 7%.

Markets in Europe have eased around 4%, and the U.S. lost about 3.6% as the U.S.-Iran war approached the end of the third week.

Meanwhile, the Bank of Japan is anticipated to hold its benchmark rates at the end of its 2-day meeting ending on March 19, amid heightened uncertainty over the Iran war's impact on the domestic economy and inflation.

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average added 0.3% to 53,902.67, and the broader Topix Index increased 0.8% to 3,637.21. 

Defense and financial stocks led gainers in Tokyo for the second consecutive session. 

Mitsubishi UFJ, Mizuho Financial, and Sumitomo Mitsui Financial gained around 2% ahead of the central bank's rate decisions. 

Mitsubishi Heavy gained 2.2%, Kawasaki Heavy advanced 0.4%, and IHI Corp. increased 1.8%. 

Nippon Yusen Corp. advanced 6.2% to ¥5,972.0, Mitsui O.S.K. Lines added 4.2% to ¥6,291.0, and Kawasaki Kisen Kaisha jumped 6.9% to ¥2,827.50.