Kioxia Holdings and Mitsui Kinzoku surged as the Nikkei Stock Average climbed 1.3% to 62,466.12, driven by chip and metals stocks. Investors pinned gains on optimism about U.S.-Iran peace talks, which could ease oil price volatility. The dollar weakened to 159.05 yen, contrasting with Thursday’s 159.03 close.

The rally reflected broader market confidence in geopolitical stability. Oil prices and bond yields, also in focus, may amplify the Nikkei’s momentum if talks progress. Kioxia’s 3.1% gain and Mitsui Kinzoku’s 5.3% jump underscored sector-specific strength. Metal stocks benefited from potential supply chain stability, while chipmakers gained from expectations of reduced geopolitical friction in tech markets. The yen’s dip against the dollar added tailwinds, as exporters often thrive when the yen weakens.

This movement highlights how sensitive Asian markets are to U.S. foreign policy shifts. A resolution in the Middle East could reduce energy price swings, benefiting both metals exporters and tech firms reliant on stable supply chains. Investors may now assess whether this rally is a temporary boost or a sign of sustained market confidence. The Nikkei’s performance serves as a barometer for global risk appetite, with implications for cross-border investments and commodity markets.