Tokyo Stock Bounce Dissipated After Crude Oil Prices Turned Higher

Akira Ito
24 Mar, 2026
Tokyo

Japan's benchmark indexes erased early gains on Tuesday after crude oil resumed its advance. 

The Nikkei 225 Stock Average gained 0.6%, and the broader Topix index added 1.5% amid hopes of de-escalation of tensions in the Middle East. 

The U.S. president claimed that Iran's "top person" is negotiating with the U.S., and both sides are inching closer to an "agreement."

However, Iran's leaders denied the existence of such talks and asserted that Trump is looking for a way to buy time to prepare for a ground invasion.

Brent crude oil jumped 4.4% to $104.26 a barrel as investors rejected Trump's claims of a possible resumption of energy product shipments through the Strait of Hormuz.

Metals, commodities, and energy markets overlooked Trump's misleading comments, and crude oil prices rose and precious metals declined amid worries of major central banks lifting rates.

 

Japan's Consumer Price Inflation Slowed to 4-Year Low 

Japan's consumer price inflation in February dropped to the lowest level since March 2022, and core inflation eased for the third consecutive month. 

Japan's annual consumer price inflation slowed to 1.3% from 1.5% in February, said the Ministry of Internal Affairs and Communications on Tuesday. 

The central government's subsidy for the electricity price and rice supported the easing of overall and core inflation. 

Core inflation, which excludes volatile food prices, eased to 1.6% from 2.0% in January and fell to below the central bank's target rate of 2.0% for the first time since March 2022. 

Despite the steady decline in the annual rate of inflation since October, prices are likely to rebound amid a surge in imported energy products because of the U.S.-Israel war on Iran.

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.6% to 51,843.73, and the broader Topix Index added 1.5% to 3,538.39. 

Technology and financial stocks led gainers in Tokyo trading on Tuesday.

SoftBank Group, Kioxia Holdings, Advantest Corp., and Tokyo Electron gained between 1% and 3%.

Sumitomo Mitsui Financial, Mizuho Financial, and Mitsubishi UFJ Financial advanced between 2% and 3%.

Nippon Yusen KK, Mitsui O.S.K. Lines, and Kawasaki Kisen Kaisha increased between 1% and 2%.