Key facts
- The Nikkei 225 index surpassed 70,000 points for the first time on June 16, 2026.
- The KOSPI index also reached a record high, eclipsing 9,000 points.
- A U.S.-Iran deal to end military conflict was announced, with a ceasefire memorandum of understanding to be signed on June 19, 2026.
- The Bank of Japan raised its policy rate to 1%, its first increase since 1995.
- Foreign capital inflows into Japan's stock market totaled 16 trillion yen since April 2025.
Japanese and South Korean stock markets reached unprecedented milestones on June 18, 2026, with the Nikkei 225 surpassing 70,000 points and the KOSPI exceeding 9,000 points for the first time. These achievements were fueled by a confluence of positive factors, including significant investor enthusiasm for artificial intelligence-driven sectors, optimism stemming from a U.S.-Iran peace deal, and a supportive monetary policy from the Bank of Japan.
The U.S.-Iran framework agreement to end military conflict, announced by President Trump, significantly eased geopolitical tensions and contributed to a broader sense of global stability. This de-escalation provided a strong tailwind for equity markets.
In Japan, the Nikkei 225's ascent was further bolstered by substantial foreign capital inflows, totaling approximately 16 trillion yen since April 2025, and improved corporate earnings. Analysts at Citigroup project the index could reach 72,000.
Adding to the positive sentiment, the Bank of Japan concluded its policy meeting by raising its policy rate to 1%, marking the first such increase since 1995. This move signals Japan's gradual exit from deflationary pressures and supports a long-term bullish outlook for the stock market.
The Nikkei 225's surge was particularly rapid, breaking the 70,000-point level less than two months after first breaching 60,000 on April 23, 2026. The index hit an intraday record high of 70,020.68 before paring some gains.