Nikkei 225 Clears 61,000 for the First Time

CNBC reported Thursday that the Nikkei 225 crossed the 61,000 mark for the first time in its history. The milestone came as Asia-Pacific equity markets broadly surged, brushing aside renewed warnings from Washington toward Tehran over a potential nuclear deal.

Nikkei Leads a Regional Surge

Japan’s benchmark index finished the session up 3.72%, its strongest single-day gain in weeks. The broader Topix added just under 2%. Australia’s S&P/ASX 200 climbed more than 1%, while South Korea’s Kospi rose roughly 1.2%. The small-cap Kosdaq slipped about 0.4%, the lone outlier across the region.

Hong Kong’s Hang Seng index futures pointed to a firm open at around 26,423, above Tuesday’s close near 26,213. Markets appeared to treat diplomatic momentum as the dominant signal, overriding hawkish rhetoric.

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Trump Warnings and Deal Signals Mix

President Donald Trump escalated his language on Iran, warning that U.S. military strikes under the campaign known as Operation Epic Fury would intensify if Tehran refused to accept agreed terms. Yet the same statement offered a conditional off-ramp. Trump wrote on Truth Social that military operations would cease if Iran agreed to terms, potentially reopening the Strait of Hormuz to all shipping traffic, including Iranian vessels.

That dual-track message gave markets reason for optimism. Oil edged higher on the uncertainty. West Texas Intermediate futures for June gained roughly 0.9%, trading near $95.95 per barrel during Asian hours.

Wall Street Had Already Set the Tone

Overnight gains on U.S. exchanges laid the groundwork for Thursday’s Asian rally. The S&P 500 advanced 1.46% to close at 7,365.12, a fresh record. The Nasdaq Composite added about 2%, also finishing at a record close above 25,800. The Dow Jones Industrial Average tacked on over 600 points, ending just shy of 49,911. Both the S&P 500 and Nasdaq marked all-time closing highs on the session.

U.S. equity futures were little changed in early Asian trading, with S&P 500 and Nasdaq 100 futures each down about 0.1% and Dow futures off fewer than 35 points.

Background: Middle East Risk and Market Resilience

Investor tolerance for geopolitical shocks has grown considerably since early 2025. Markets have repeatedly absorbed escalations in the Middle East without sustained drawdowns. The pattern reflects confidence that supply disruptions, while possible, remain manageable. It also reflects a broader shift toward pricing diplomatic outcomes over military ones when both signals appear simultaneously.

The Nikkei’s climb through 61,000 is particularly notable. The index spent much of 2024 consolidating after its historic push through 40,000. Thursday’s record suggests renewed momentum driven by yen dynamics, corporate earnings improvement, and spillover from U.S. equity strength.

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