On the morning of June 12, 2026, the Tokyo stock market experienced a significant rally following the US President's announcement to halt a planned military strike against Iran, which provided reassurance to investors and led to widespread buying activity [1][2]. Market participants noted that the easing of geopolitical risks, particularly the reduction in US-Iran tensions, was a major factor behind the surge, with export-related and financial stocks seeing notable gains [1][2]. The Nikkei 225 index rose by over 400 points at one stage and closed the morning session up 380 points at 36,200, surpassing the recent resistance level of 36,000 [1]. Technical indicators showed the RSI at 65, suggesting limited overheating, and the next target for the index was identified around 36,500, with a support line at 35,800 [1]. According to market analysts, the MACD and RSI were trending upwards, indicating a short-term bullish trend [2].
Investor sentiment improved as the US President's restraint on military action reduced immediate risk, but some market participants cautioned that renewed tensions in Iran or other Middle Eastern developments could still pose risks [1][2]. There was also advice for traders to carefully time profit-taking during the rally and to promptly cut losses if the support line is breached [2]. Additionally, attention was drawn to upcoming corporate earnings and financial policy announcements as potential market drivers [2].
While both sources agree on the positive impact of the US President's decision and the technical breakout above resistance, there is a discrepancy in the reported price levels: Source 1 states the Nikkei closed at 36,200, while Source 2 mentions a recovery to the 28,000 range during the morning session [1][2].
CONCLUSION
The US President's decision to halt military action against Iran triggered a strong rally in Tokyo stocks, with the Nikkei 225 breaking key resistance and investor sentiment improving. However, market participants remain cautious about potential renewed geopolitical risks and upcoming fundamental events. The overall takeaway is a short-term bullish outlook, tempered by vigilance for any reversal in Middle Eastern tensions or negative corporate news.