The Nikkei 225 Index Closes 1.40% Higher

The Nikkei 225 climbed 1.7% to above 53,300, while the broad-based TOPIX gained 1.1% to 3,600 on Friday, reversing the prior day's losses amid hopes that the crucial waterway, the Strait of Hormuz, would partially reopen. Reports indicated that Iran is drafting a protocol with Oman to monitor and coordinate tanker traffic through the strait, which has been effectively shut since the start of the conflict. The plan would place transit under joint supervision and could require ships to pay tolls to Tehran. However, uncertainty lingered as oil prices remained elevated after Trump vowed to escalate the conflict in the coming weeks. Separately, Trump also unveiled sweeping tariff adjustments, including 100% duties on certain branded pharmaceutical imports with broad exemptions, alongside changes to metals tariffs. Among individual stocks, notable gains were seen from Hitachi (3.1%), Tokyo Electron (3.1%), SoftBank Group (1.4%), Fast Retailing (1.9%), and Mitsubishi (1.2%).

The Nikkei 225 Index dropped -1403 points or 2.61 percent on Thursday to close at 52337 points. Losses were led by Sumitomo Dainippon (-9.27%), Taisei (-6.55%) and Advantest (-6.33%).

The Nikkei 225 Index slid 2.4% to close at 52,463, while the broader Topix Index slipped 1.6% to 3,612 on Thursday, reversing gains from the previous session as markets scaled back expectations for a quick end to the Middle East conflict after US President Trump's speech. Trump said Washington’s core objectives in the conflict were nearing completion, but gave no clear timeline for ending the war, while warning that the US could still strike Iran “extremely hard” over the next two to three weeks. He added that the US did not need the Strait of Hormuz, suggesting it would reopen naturally once tensions ease, though concerns over the waterway kept energy markets volatile. Hopes of an imminent end to the month-long conflict had earlier supported global equities, but his remarks reversed sentiment, sending stocks lower again. Most sectors declined, with index heavyweights leading losses, including SoftBank Group (-4.3%), Tokyo Electron (-3.2%), and Mitsubishi UFJ Financial (-1.7%).