Japan’s Nikkei 225 climbed above 65,000 for the first time on Monday, as a sharp fall in oil prices helped ease investor concerns over energy supplies and lifted Asian markets during a quieter holiday-affected session.
The benchmark index rose more than 3% to reach a record 65,408.87, extending Japan’s strong run as traders reacted to signs that tensions around the Strait of Hormuz may be easing. The broader Topix index also gained 1.19%, suggesting that the rally was not limited to a small group of major stocks.
The latest move came after U.S. President Donald Trump said in a Truth Social post that negotiations with Iran were “proceeding in an orderly and constructive manner,” adding that he had told his representatives “not to rush into a deal in that time is on [their] side.”
His remarks helped calm fears of a prolonged disruption to one of the world’s most important oil routes. The Strait of Hormuz is closely watched by energy traders because a significant share of global crude shipments passes through the narrow waterway. Any extended closure can quickly affect fuel prices, shipping costs, inflation expectations, and the outlook for central bank policy.
Oil prices fell steeply after the comments. West Texas Intermediate futures for July delivery dropped 5.87% to $90.93 a barrel in early Asian trading, while Brent crude futures for July declined 5.58% to $97.76 a barrel.
Crude had risen sharply in recent sessions after the Trump administration imposed a blockade on Iranian ports and Tehran effectively closed the Strait of Hormuz. The possibility of the route reopening gave investors some relief, particularly in Asia, where many economies depend heavily on imported energy.
Taiwan’s Taiex also reached a fresh record, rising past 43,000 before trading 2.91% higher at 43,495.92. Elsewhere, Australia’s S&P/ASX 200 advanced 0.45%, China’s CSI 300 added 0.91%, and India’s Nifty 50 rose 1.09%.
Markets in Hong Kong and South Korea were closed for public holidays, while U.S. markets were also shut for Memorial Day.
The gains followed a positive close on Wall Street on Friday. The Dow Jones Industrial Average added 294.04 points, or 0.58%, to finish at 50,579.70 after touching an intraday record. The S&P 500 rose 0.37% to 7,473.47, and the Nasdaq Composite gained 0.19% to close at 26,343.97.