On June 12, the Tokyo stock market experienced a significant rally after former U.S. President Trump announced the cancellation of a planned attack on Iran. This development led to a broad wave of buy orders as investor risk aversion eased, resulting in the Nikkei 225 index surging by more than 2,500 yen at one point during the session [1].
Market participants noted that concerns over escalating tensions in the Middle East temporarily subsided, prompting strong buying interest, particularly in leading stocks. Export-related and financial stocks were especially prominent among the gainers [1].
However, analysts cautioned that the market remains sensitive to developments in the Middle East, warning that significant volatility could return depending on future geopolitical events. The main support level for the Nikkei 225 is seen around 38,000 yen, with resistance near 40,000 yen. The outlook for the index is expected to be heavily influenced by both Middle East developments and movements in the U.S. market [1].
CONCLUSION
The Tokyo stock market responded positively to the de-escalation of Middle East tensions, with the Nikkei 225 posting a sharp gain. However, analysts advise continued vigilance, as future market movements will depend on geopolitical developments and U.S. market trends.