Japan's Indexes Rebounded Tracking Wall Street Gains, Yen Hovered at Intervention Level

Akira Ito
12 Jun, 2026
Tokyo

Japan's indexes soared in Friday's trading following gains in overnight trading in New York. 

The Nikkei 225 Stock Average gained 3.4%, and the broader TOPIX advanced 1.5% amid improving sentiment in the Middle East. 

Investors bid up stocks after the U.S. president signaled a possible peace deal with Iran as early as this weekend; however, previous claims of an agreement have failed to live up to market expectations. 

For now, the price of Brent crude oil decreased 1.9% to $88.86 a barrel and extended this week's losses to 8% as investors held out for a possible agreement to reopen the Strait of Hormuz for commercial shipping. 

The Bank of Japan is widely anticipated to raise rates after the policy meeting next week amid higher inflation and tighter supply conditions for energy products from the Middle East. 

The yield on 10-year Japanese government bonds advanced to 2.64% and hovered near multi-decade highs. 

Japan's industrial production advanced 0.5% from the previous month in April, according to the Ministry of Economy, Trade, and Industry. 

Investors also reviewed the European Central Bank's latest rate actions as policymakers adjusted to higher energy inflation linked to the war in Iran.

The ECB lifted its three benchmark rates by 25 basis points, an increase for the first time since 2023, to between 2.25% and 2.65%. 

The central bank also adjusted its overall inflation outlook to 3.0% from the previous estimate of 2.6% and its GDP growth in the eurozone to 0.8% from the previous estimate of 0.9%. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average soared 3.4% to 66,385.34, and the broader TOPIX advanced 1.5% to 3,887.83. 

For the week, the Nikkei 225 Stock Average gained 3.3%, and the TOPIX advanced 0.8% as investors awaited the Bank of Japan's rate decisions next week. 

AI- and semiconductor-linked stocks led the rebound in Friday's trading. 

Kioxia Holdings jumped 6%, SoftBank Group gained 5%, Tokyo Electron soared 10%, and Taiyo Yuden advanced 12%. 

Banks and financial services providers advanced ahead of the Bank of Japan's rate decision, and the Japanese yen traded at 160.15 against the U.S. dollar. 

Sumitomo Mitsui Financial increased 3.2%, Mitsubishi UFJ Financial advanced 1%, and Mizuho Financial gained 3%.