Nikkei Hits Record High Amid Geopolitical Tension and Wall Street Momentum

The Nikkei 225 closed at a fresh record high on Wednesday, marking its third consecutive day of gains. The index finished at 59,585.86, an increase of 236.69 points or 0.40%, as it neared the 59,590-point plateau. The market is expected to maintain this upward trajectory into Thursday's session. The rally was heavily bolstered by strong performance on Wall Street, where the S&P 500 and NASDAQ both achieved record closes. Market sentiment was further influenced by complex geopolitical developments, specifically the extension of a U.S. ceasefire with Iran. However, tensions remain elevated as the U.S. continues to blockade Iranian ports and Iran maintains the closure of the Strait of Hormuz. Energy markets reacted sharply to these supply risks, with West Texas Intermediate (WTI) crude for June delivery climbing 3.95% to $93.21 per barrel. In Japan, corporate performance was starkly divided; Softbank Group surged 8.47% and TDK rose 4.83%, while automotive leaders faced losses, with Toyota Motor falling 2.71% and Honda Motor retreating 1.45%. Looking ahead, investors are awaiting preliminary April PMI data for Japan's manufacturing and services sectors to gauge domestic economic health. With the U.S. indices providing a solid lead and corporate earnings showing early strength, the outlook for Asian markets remains cautiously optimistic.