Tokyo Stocks Advanced as Middle East Worries Eased, Japan's Trade Surplus Shrank In F

Akira Ito
18 Mar, 2026
Tokyo

Stocks in Tokyo rebounded, and benchmark indexes reversed previous session's losses. 

The Nikkei 225 Stock Average jumped nearly 3%, and the broader Topix index gained more than 2% as investors held out for stability in crude oil prices.

The Trump administration signaled that the U.S. military is prepared to offer support to cargo ships traversing through the narrow channel, lifting hopes that shipments to India, China, South Korea, and Japan are likely to resume in the near future. 

Brent crude oil prices decreased by 2.3% to $101.17 a barrel as the U.S. abandoned its plan to form an international coalition to secure safe passage through the Strait of Hormuz. 

Despite the Trump administration's claims of success in its military attacks in Iran, NATO allies pushed back on forming a coalition to provide a safe passage through the Strait of Hormuz. 

Market sentiment was further boosted after Japan's exports in February rose by 4.2% from a year ago, surpassing expectations. 

 

Japan's Trade Surplus Shrank Amid Softer Demand from China and U.S.

Exports rose to 9.7 trillion yen, a slower than a 16.8% rise in the previous month amid softer demand from China. 

Shipments to India advanced 22.4% and to the European Union rose 14%, but fell to China by 10.9% and to the U.S. by 8% due to weakness in automobiles, auto parts, and pharmaceuticals. 

Japan's shipments to the U.S. declined to 1.75 trillion yen and declined for the third consecutive month as shipments of automobiles plunged 16.6% from a year ago, pushed down by aggressive tariffs imposed by the Trump administration.

Imports advanced 10.2% to 9.5 trillion yen, the Finance Ministry said in a preliminary report.

February's international trade balance dropped to 57.3 billion yen, or $361 million, and the increase in advanced chip exports to other Asian countries was overwhelmed by the weakness in shipments to the U.S. and China.  

The trade surplus fell sharply from 559.2 billion yen in the month a year ago as growth in imports rose faster than exports. 

The Middle East conflict this month has driven oil prices higher by 50%, which is likely to turn the international trade balance to a deficit in March and April. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average soared 2.9% to 55,239.40, and the broader TOPIX Index advanced 2.5% to 3,717.41. 

Semiconductor equipment makers led gainers in Tokyo on Thursday's trading. 

SoftBank Group, Advantest Corp., Tokyo Electron, and Disco Corp. jumped between 2% and 5%. 

Nippon Yusen, Mitsui OSK Lines, and Kawasaki Kisen Kaisha rose between 2% and 5%.