Japan's Indexes Extended Weekly Gains to 4% Overlooking Rising Risks to Higher Rates Headwinds

Akira Ito
03 Apr, 2026
Tokyo

Japan's benchmark indexes rebounded in volatile trading amid speculation that diplomatic efforts may pave a way to reopen the critical waterway in the Middle East. 

The Nikkei 225 Stock Average increased 1.1%, the broader Topix index advanced 0.8%, and the yen hovered at 159.62 against the U.S. dollar. 

For the week, benchmark indexes advanced more than 4%, and they increased over 3% year to date.

Asian markets struggled to advance on the final day of a chaotic week, as the U.S. president sent mixed messages over the war on Iran. 

The U.S. military maintains at least 19 military bases in several Gulf nations; however, many of those bases have been severely damaged and are lacking a stable supply of interceptors or operational air defense systems.

These bases were designed to provide maritime security, rapid response, and protection from missile attacks from hostile regimes in the region. 

Instead, these bases have become targets of Iran's drone swarms and missile attacks, destabilizing crucial energy exports and deteriorating economic conditions. 

Global market sentiment remained fragile as Iran and Oman discussed plans to monitor transit through the Strait of Hormuz, and the U.S. reiterated its plans to continue bombing Iran. 

China and Pakistan floated a plan, along with Saudi Arabia, Türkiye, and Egypt, to ramp up arms production in the Middle East, replacing the U.S. armament. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average gained 1.1% to 53,026.84, and the broader Topix advanced 0.8% to 3,640.30. 

Technology, semiconductor equipment makers, and shipping stocks led the gainers in Tokyo on Friday. 

SoftBank Group, Tokyo Electron, Advantest Corp., and Disco Corp. gained between 2% and 4%. 

Nippon Yusen, Kawasaki Kisen Kaisha, and Mitsui O.S.K. Lines fluctuated around the flatline. 

Japan Oil Transport, Idemitsu Kosan, and Fuji Oil traded in a tight band of 2% amid elevated crude oil prices and an uncertain outlook over the reopening of the Strait of Hormuz.