17.03.202600:37:20UTC+00Japanese Shares Rise as Oil Retreats

The Nikkei 225 Index rose 0.5% to around 54,000, while the broader Topix Index advanced 1.5% to 3,665 on Tuesday, ending a three-day losing streak. The gains tracked an overnight rebound on Wall Street, as easing oil prices improved investor sentiment.

Oil prices retreated after several tankers safely passed through the Strait of Hormuz, and as major economies signaled they would release petroleum reserves to mitigate potential supply disruptions. The earlier surge in oil prices had intensified inflation worries, leaving oil-importing economies such as Japan particularly exposed to supply shocks.

Against this backdrop, the Bank of Japan is expected to leave its policy rate unchanged this week amid elevated uncertainty over how the Iran war could affect Japan’s domestic economy.

Defense and financial stocks led the rebound, with notable gains in Mitsubishi Heavy (3.5%), Kawasaki Heavy (2.3%), Mitsubishi UFJ (1.8%), Sumitomo Mitsui (2.4%), and Mizuho Financial (2.4%).