Global Markets | Japan's Nikkei ends higher as traders gauge efforts to calm energy

Japan's ​Nikkei share gauge closed higher ​on Tuesday, recovering some of the losses ​from the previous session, as investors reacted to moves by major economies to tap oil reserves to stabilise markets shaken by the Middle East ‌conflict.

The benchmark ⁠Nikkei 225 ⁠Index rose 2.88% to close at 54,248.39, recouping some losses after ​a 5.2% plunge on Monday. The broader Topix climbed 2.47% to 3,664.28.

Japanese Finance Minister Satsuki Katayama said G7 energy ministers are expected to meet tonight to discuss the process of releasing oil reserves.


U.S. President Donald Trump said ⁠the war in ‌the Middle East could be over soon, ​even as ​Iran's hardliners staged a show of loyalty ⁠to new Supreme Leader Mojtaba Khamenei.

"There is clearly ​a rebound effect from yesterday's sharp decline," said ​Maki Sawada, an equities strategist at Nomura Securities. "The situation remains dependent on Middle East developments... Therefore, we certainly see the possibility of another downturn."

Data on Tuesday showed Japan's economy grew faster than initially estimated in the final quarter ‌of 2025, supported by rapid business investment, though the current Middle East conflict casts a shadow over the growth outlook.

In the Nikkei ⁠index, 202 stocks advanced while 23 declined, with the biggest gains concentrated in the artificial intelligence sector, which is highly sensitive ​to energy prices due to its substantial power requirements for computing.

Leading the rally, Lasertec, a semiconductor and inspection equipment maker, closed 14.5% higher, followed by Sumitomo Electric Industries, up 8.8%, and Furukawa Electric, which ended 8.5% higher.