During trading on May 17, 2026, the Nikkei index on the Tokyo Stock Exchange officially crossed the 65,000-point threshold for the first time in history. This marks the latest milestone in the recent strong rally of Japan's stock market.
Analysts attribute the surge primarily to positive signals regarding a possible de-escalation of tensions in the Middle East, which boosted investor sentiment. News of peace negotiations and a potential ceasefire agreement among concerned parties has raised hopes of a return to regional stability, driving share prices higher across multiple sectors.
Energy, airline, and tourism stocks particularly benefited from this outlook, leading the market-wide advance. Many experts believe that if the Middle East situation continues to cool, the Nikkei could sustain its upward momentum in coming sessions and aim for even higher levels.
Prior to this, the Nikkei had repeatedly broken historical records in the first half of 2026, reflecting strong investor confidence in Japan's economy and the global outlook following a period of geopolitical uncertainty.
