{"id":47619,"date":"2026-05-25T06:47:58","date_gmt":"2026-05-25T06:47:58","guid":{"rendered":"https:\/\/www.vtmarkets.com\/uncategorized\/nikkei-breaks-65000-as-oil-risk-eases\/"},"modified":"2026-05-25T06:47:58","modified_gmt":"2026-05-25T06:47:58","slug":"nikkei-breaks-65000-as-oil-risk-eases","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/nikkei-breaks-65000-as-oil-risk-eases\/","title":{"rendered":"Nikkei Breaks 65,000 as Oil Risk Eases"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarketsmy.com\/wp-content\/uploads\/2026\/05\/1_Nikkei2-2-1024x573.webp\" alt=\"\" class=\"wp-image-48097\"\/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Nikkei225 traded at <strong>65,182.15<\/strong>, up <strong>1,903.45<\/strong>, or <strong>3.01%<\/strong>, after reaching a session high of <strong>65,425.15<\/strong>.<\/li>\n\n\n\n<li>The benchmark Nikkei 225 broke above <strong>65,000<\/strong> for the first time on Monday, while thin holiday trading amplified the move.<\/li>\n\n\n\n<li>Oil prices plunged more than <strong>5%<\/strong> after Trump said US-Iran talks were moving in an \u201corderly and constructive manner\u201d.<\/li>\n\n\n\n<li>Gold still rose above <strong>$4,560<\/strong>, adding roughly <strong>1%<\/strong>, showing that traders are not fully abandoning safety hedges.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n\n\n\n<p>Japan\u2019s Nikkei 225 broke through the <strong>65,000<\/strong> mark for the first time on Monday, rallying more than <strong>3%<\/strong> as traders priced a lower risk of an oil-driven shock to the global economy. The benchmark index touched a record <strong>65,409<\/strong>, while the broader Topix climbed <strong>1.2%<\/strong>.<\/p>\n\n\n\n<p>On the platform chart, Nikkei225 traded at <strong>65,182.15<\/strong>, up <strong>1,903.45<\/strong>, or <strong>3.01%<\/strong>, at <strong>05\/25 09:20:25 GMT+3<\/strong>. The session high stood at <strong>65,425.15<\/strong>, with a low of <strong>63,750.15<\/strong>, an open at <strong>63,750.15<\/strong>, and a close at <strong>63,278.70<\/strong>.<\/p>\n\n\n\n<p>Global stocks surged while oil and the US dollar slipped as markets reacted to the prospect of a deal to end the Iran war, though uncertainty over when the Strait of Hormuz would reopen kept some caution in place. Japan\u2019s energy-import dependence gives the Nikkei a sharper sensitivity to oil relief than many other developed markets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Oil Relief Gives Japan A Clear Tailwind<\/h2>\n\n\n\n<p>Japan imports the overwhelming majority of its energy, and a large share moves through the Strait of Hormuz. When that waterway shuts or becomes dangerous, Japan faces higher fuel costs, wider import bills, and stronger inflation pressure. When those risks ease, Japanese equities can respond quickly.<\/p>\n\n\n\n<p>The latest rally followed comments from Donald Trump that negotiations with Iran were progressing in an \u201corderly and constructive manner\u201d. He also said US representatives were told \u201cnot to rush into a deal\u201d, which kept traders from pricing a full resolution too quickly.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The US and Iran are closing in on a deal that would reopen the Strait of Hormuz, senior US officials said Sunday, even as President Donald Trump insisted he would not \u201crush\u201d into an agreement. <a href=\"https:\/\/t.co\/LUYt7HWZQR\">https:\/\/t.co\/LUYt7HWZQR<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/2058751448565871075?ref_src=twsrc%5Etfw\">May 25, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Oil traders still reacted hard. Crude prices plunged more than <strong>5%<\/strong>, reversing part of the rally caused by the blockade on Iranian ports and the effective closure of the Strait of Hormuz earlier this year. The strait carries roughly <strong>a fifth<\/strong> of global oil supply, so even a partial reopening would ease pressure across fuel, shipping, and inflation-sensitive sectors.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Three tankers loaded with LNG appear to have crossed the Strait of Hormuz in recent days, as suppliers in Qatar and the UAE attempt to get fuel out to key buyers despite the near-total closure of the waterway <a href=\"https:\/\/t.co\/fQa37ARMuo\">https:\/\/t.co\/fQa37ARMuo<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/2058734360967176431?ref_src=twsrc%5Etfw\">May 25, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>AP reported that US crude dropped to <strong>$92.25<\/strong> while Brent fell to <strong>$99.38<\/strong> after Trump said Iran peace talks were progressing.<\/p>\n\n\n\n<p>That shift helps Japan on several fronts. Lower oil reduces import costs, eases margin pressure for manufacturers, supports household spending, and lowers the odds that imported inflation forces a sharper Bank of Japan response.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Thin Holiday Trading Amplifies The Move<\/h2>\n\n\n\n<p>The rally also came during thin holiday conditions. Markets in Hong Kong and South Korea were closed, while US markets were offline for Memorial Day. Lighter liquidity can exaggerate price swings, especially when a major macro catalyst hits at the start of the week.<\/p>\n\n\n\n<p>That explains part of the sharp move. Traders reacted to oil relief, AI optimism, and a softer dollar, but the holiday backdrop likely made the rally look more dramatic than it might have during a full global session.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Beware the boom and bust cycle of memory stocks, investors warn amid AI boom <a href=\"https:\/\/t.co\/gpD1y72ytn\">https:\/\/t.co\/gpD1y72ytn<\/a><\/p>&mdash; CNBC (@CNBC) <a href=\"https:\/\/twitter.com\/CNBC\/status\/2058778347337855091?ref_src=twsrc%5Etfw\">May 25, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Still, the move had logic behind it. Asian economies remain exposed to energy prices, and Japan sits near the front of that risk. When oil fell, stocks tied to domestic margins, consumer spending, and export competitiveness all received a cleaner macro backdrop.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Gold Holds A Safety Bid<\/h2>\n\n\n\n<p>Gold\u2019s move showed that markets have turned more optimistic, not fully relaxed. Even as stocks surged and oil cooled, gold prices edged higher above <strong>$4,560<\/strong> early Monday, adding roughly <strong>1%<\/strong> as traders kept hedges in place.<\/p>\n\n\n\n<p>Gold rose more than <strong>1%<\/strong> as the dollar and oil eased on US-Iran deal prospects, with spot gold reaching <strong>$4,557.46<\/strong> per ounce and US gold futures at <strong>$4,558.80<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Gold rose as signs that the US and Iran were closing in on a deal that would reopen the Strait of Hormuz tempered inflation concerns <a href=\"https:\/\/t.co\/lajhFX3hH7\">https:\/\/t.co\/lajhFX3hH7<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/2058684573052006534?ref_src=twsrc%5Etfw\">May 24, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>That mixed behaviour captures current sentiment well. Traders are buying risk again, but they still expect volatility. One Truth Social post appeared to move oil by more than <strong>5%<\/strong>, stocks by around <strong>3%<\/strong>, and, in market terms, blood pressure by <strong>20%<\/strong>. The joke lands because the market remains heavily headline-driven.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Technical Analysis<\/h2>\n\n\n\n<p>Nikkei 225 surged above <strong>65,000<\/strong>, climbing over 3% as easing geopolitical fears and softer oil concerns boosted risk appetite across Japanese equities.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Current Price:<\/strong> 65,182<\/li>\n\n\n\n<li><strong>MA5:<\/strong> 62,463<\/li>\n\n\n\n<li><strong>MA10:<\/strong> 62,451<\/li>\n\n\n\n<li><strong>MA20:<\/strong> 61,601<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarketsmy.com\/wp-content\/uploads\/2026\/05\/image-32-1024x454.jpg\" alt=\"\" class=\"wp-image-50931\"\/><\/figure>\n\n\n\n<p>The index has broken decisively above the previous resistance zone near <strong>63,800<\/strong>, with all short-term moving averages sloping sharply higher. Momentum remains firmly bullish after buyers defended the 62,000 region earlier this month.<\/p>\n\n\n\n<p>Japan\u2019s rally has been amplified by falling oil anxiety. As a major energy importer heavily reliant on Middle East shipping routes, easing fears around the Strait of Hormuz gave the Nikkei an extra lift.<\/p>\n\n\n\n<p>Immediate resistance now sits near <strong>66,500<\/strong>, while support has shifted higher toward <strong>64,000\u201363,800<\/strong>. A sustained hold above breakout levels could keep momentum intact into the coming sessions.<\/p>\n\n\n\n<p>The broader trend remains bullish while price stays above the rising MA cluster and global risk sentiment holds steady.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Cautious Forecast<\/h2>\n\n\n\n<p>Nikkei225 keeps a bullish short-term bias while it holds above <strong>62,463.17<\/strong> and <strong>61,601.01<\/strong>. A break above <strong>65,425.15<\/strong> would support a move toward <strong>66,680.55<\/strong>, especially if oil remains below recent stress levels and US-Iran talks keep moving forward.<\/p>\n\n\n\n<p>A drop below <strong>62,450.79<\/strong> would warn that thin holiday liquidity exaggerated the rally. The next move will likely depend on whether the Strait of Hormuz reopening becomes real, whether oil stays lower after its <strong>5%<\/strong> drop, and whether Japanese traders continue treating lower energy costs as worth several trillion yen in market value.<\/p>\n\n\n\n<p><strong>Learn more about trading <a href=\"https:\/\/www.vtmarkets.com\/indices\" target=\"_blank\" rel=\"noreferrer noopener\">Indices<\/a> on <a href=\"https:\/\/www.vtmarkets.com\/trade-now\" target=\"_blank\" rel=\"noreferrer noopener\">VT Markets<\/a> today.<\/strong><\/p>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary><strong>Trader Questions<\/strong><\/summary>\n<p><strong>Why Did The Nikkei 225 Break Above 65,000?<\/strong><\/p>\n\n\n\n<p>The Nikkei 225 broke above <strong>65,000<\/strong> for the first time as lower oil prices eased fears of an energy-driven inflation shock. Nikkei225 traded at <strong>65,182.15<\/strong>, up <strong>1,903.45<\/strong>, or <strong>3.01%<\/strong>, after reaching a session high of <strong>65,425.15<\/strong>.<\/p>\n\n\n\n<p><strong>What Is The Current Nikkei225 Price?<\/strong><\/p>\n\n\n\n<p>Nikkei225 traded at <strong>65,182.15<\/strong>. The session high was <strong>65,425.15<\/strong>, with a low of <strong>63,750.15<\/strong>, an open at <strong>63,750.15<\/strong>, and a close at <strong>63,278.70<\/strong>.<\/p>\n\n\n\n<p><strong>Why Are Japanese Stocks Rising?<\/strong><\/p>\n\n\n\n<p>Japanese stocks are rising because oil prices fell sharply after Trump said US-Iran negotiations were progressing in an \u201corderly and constructive manner\u201d. Lower oil helps Japan by reducing import costs, easing inflation pressure, and improving the outlook for corporate margins.<\/p>\n\n\n\n<p><strong>Why Does Lower Oil Support The Nikkei?<\/strong><\/p>\n\n\n\n<p>Lower oil supports the Nikkei because Japan imports most of its energy. When crude prices fall, Japanese companies face lower fuel, shipping, and production costs. Households also gain some relief from energy-led inflation.<\/p>\n\n\n\n<p><strong>How Much Did Oil Prices Fall?<\/strong><\/p>\n\n\n\n<p>Crude prices plunged more than <strong>5%<\/strong> after Trump\u2019s comments on Iran talks. The drop reversed part of the earlier rally caused by the blockade on Iranian ports and the effective closure of the Strait of Hormuz.<\/p>\n<\/details>\n\n<p>\n\n<p><strong>Start trading now &#8211; Click <a href=\"https:\/\/www.vtmarketsmy.com\/trade-now\/\">here<\/a> to create your real VT Markets account <\/strong> <\/p>\n<!-- \/wp:post-content -->","protected":false},"excerpt":{"rendered":"<p>Nikkei jumps past 65,000 as Iran deal hopes, lower oil and AI momentum lift Japanese stocks.<\/p>\n","protected":false},"author":103,"featured_media":47617,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[],"class_list":["post-47619","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/47619","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/103"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=47619"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/47619\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/47617"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=47619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=47619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=47619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}