Japan’s Nikkei Stock Average Ends Higher despite Middle East Conflict; Advantest Soars (UPDATE 1)

Reuters

12:41 JST, June 16, 2025 (updated at 16:50 JST)

TOKYO, June 16 (Reuters) – Japan’s Nikkei share average climbed more than 1% on Monday, driven by chipmaker Advantest’s 9% surge following a brokerage target price upgrade, as traders shrugged off geopolitical tensions between Israel and Iran.

The Nikkei rose 1.26% to close at 38,311.33 and the broader Topix climbed 0.75% to 2,777.13.

“Japanese shares were strong despite worries about geopolitical risks of the Middle East,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.

“That was because investors were relieved that oil prices, which affect the local economy, did not spike (today),” he said.

Global investors keenly monitored the Israel-Iran conflict for any signs of escalation into a broader regional conflict.

In Japan, shares of Advantest jumped 9.63% after JPMorgan Securities on Friday raised its target price to 11,000 yen from 10,500 yen. The shares were the largest contributors to the Nikkei’s gains.

Uniqlo-brand owner Fast Retailing rose 1% and technology investor SoftBank Group climbed 2.5%.

A weaker yen also supported sentiment, said Tokai Tokyo’s Yasuda.

The yen weakened late last week as investors sought safe-haven assets such as the dollar – a trend that continued through Monday. The greenback was last up 0.1% at 144.235 against the Japanese yen.

A weaker yen benefits exporters, as it boosts the yen value of overseas earnings when profits are repatriated to Japan.

Shares of Nippon Steel rose 1.5% after U.S President Donald Trump approved its $14.9 billion bid for U.S. Steel on Friday.

The sector for steelmakers rose 1%.

The shipping sector climbed 1% on expectations for rising freight rates amid the Middle East conflict. Shares of Kawasaki Kisen rose 1.38%.

Of more than 1,600 stocks trading on the TSE’s prime market, 69% rose, 26% declined and 3% traded flat.