Japan’s Nikkei 225 is poised for a record close that would erase losses from the Iran war, according to Bloomberg. The blue‑chip index jumped 2.4 % to 59,549.59 late morning in Tokyo, topping the all‑time high of 58,850.27 set on Feb. 27. Market sentiment tightens as peace talks gain traction.

Export‑heavy sectors drove the rally. Automotive, electronics and information technology shares leapt, while real‑estate and food stocks slipped. The broader Topix climbed 1.3 % to 3,820.66, reflecting optimism that a diplomatic settlement could lift factory output and consumer confidence across Japan’s industrial base.

For investors, the jump signals a potential rebound in Japan’s export sector after a prolonged slump. A record close could lift investor confidence and bolster the yen, which has hovered near its 2024 lows. The move also pressures policymakers to sustain growth‑friendly measures while monitoring geopolitical risks that could still surface.

Analysts note that the Nikkei’s ascent mirrors a broader trend of Asian markets rebounding from Middle East tensions. The index’s performance may encourage Japanese firms to accelerate overseas investments, especially in automotive electrification and semiconductor supply chains. Meanwhile, the Bank of Japan may face a tighter policy window if the rally sustains, balancing growth and inflation expectations.