Japan’s broad Topix gauge of shares advanced for a sixth consecutive session on Monday, driven by a decrease in oil prices and favourable trends in global markets that enhanced investor sentiment. The Topix gained 0.50% to close at 4,084.74, marking its longest winning streak since August 2025. The benchmark Nikkei 225, which is heavily weighted by tech shares, struggled for direction, closing flat at 69,737.69.

Investors maintained a vigilant perspective on the trajectory of central bank policy, as the Federal Reserve indicated a hawkish orientation under Chair Kevin Warsh, while the Bank of Japan is anticipated to persist in its tightening measures. Meanwhile, an increase in oil output targets and the reopening of the Strait of Hormuz offered some respite to markets. The yen resumed its weakening trend, prompting traders to remain vigilant for possible intervention by authorities in Tokyo. Meanwhile, Japanese government bonds experienced a significant decline, with the benchmark 10-year yield climbing to its highest level since October 1996.

While Wall Street was closed on Friday for a holiday, Japanese equities drew inspiration from the robust performance observed in Europe and other international markets, according to Maki Sawada, an equities strategist at Nomura Securities. “These factors, combined with the downward trend in crude prices following OPEC+’s decision over the weekend to increase production, seem to be supporting investor sentiment,” Sawada said. “Fluctuations in these AI and semiconductor-related shares will continue to influence whether the Nikkei 225 rises or falls.”

The shipping, autos, and machinery sectors led gains in the broad market, with Toyota Motor rising 3.36% and Mitsubishi Heavy Ind. climbing 8.39%. Suppliers within the technology sector were the primary contributors to the declines observed on the Nikkei. The largest losers were Taiyo Yuden, down 10.58%, followed by Ibiden, 8.37% lower, and Murata Manufacturing, which lost 7.49%. On the Nikkei 225, there were 177 advancers compared to 48 decliners.