Japanese stocks are poised to open higher after U.S. President Donald Trump said the United States and Iran have reached a peace deal, raising hopes that the Middle East conflict may be moving toward an end and that the Strait of Hormuz could reopen. Nikkei 225 futures expiring in September traded above the previous Osaka close in early Tokyo trading, while oil prices fell and the U.S. dollar weakened against the yen. Trump said in a social media post that he was authorizing the immediate removal of the U.S. naval blockade of the Strait of Hormuz. Earlier, Pakistani Prime Minister Shehbaz Sharif said the U.S.-Iran agreement would be signed in Switzerland on June 19.
The situation in Israel remains uncertain, however, after Prime Minister Benjamin Netanyahu’s government complicated the signing process with fresh attacks on Lebanon. Market participants said the easing of geopolitical tensions could support a broader rally in Japanese equities, not only in technology shares but also in manufacturers and other stocks that had recently been sold off. Lower oil prices are expected to help sentiment by easing cost pressures on businesses and consumers.
Analysts cautioned that uncertainty still remains over the timing and details of any arrangement involving nuclear holdings. After reaching a record high in early June, the Nikkei 225 has since retreated amid volatile trading as investors reacted to shifting Middle East tensions and concerns about the momentum of the artificial intelligence-driven stock rally.
Shares linked to SpaceX are also expected to rise after the company made a strong U.S. market debut on Friday, when it reportedly raised $75 billion in the largest listing ever. In the broader market, investors are also watching this week’s central bank meetings in the United States and Japan. In Japan, Bank of Japan Governor Kazuo Ueda is hospitalized, and deputy governor Shinichi Uchida is scheduled to hold the post-meeting press conference on Tuesday.
