Japan's Nikkei rallies amid Asian market shifts and Middle East tensions

Japan's Nikkei 225 jumped about 1.4%‑1.55% on the day, led by semiconductor‑related stocks such as Kioxia Holdings (+8.3%), Advantest (+5.9%) and Tokyo Electron (+5.5%). The advance was the strongest driver of gains across Asian equities.

South Korea’s Kospi rose 0.62%, while China’s Shanghai Composite gained 1.65% and Shenzhen Composite climbed 2.22% after consumer‑price data came in slightly below expectations. In contrast, Hong Kong’s Hang Seng fell 0.70% and Taiwan’s Taiex slipped 0.83%; Australia’s S&P/ASX 200 dropped 0.26%.

Investors remained focused on escalating tensions in the Middle East, where recent U.S. strikes in Iran and diplomatic talks kept oil prices volatile. Crude futures retreated roughly 1% after earlier gains, reflecting concerns over supply routes through the Strait of Hormuz. The Nikkei’s volatility index also rose sharply, indicating heightened market nervousness.