

Nikkei 225 Rallies After Oil Pullback and Stronger Tankan Reading

Japanese stocks entered April with a strong rebound, as lower oil prices and firmer domestic data gave investors room to turn positive again. The Nikkei 225 climbed 3.58% to 52,889.85, ending a four-session losing streak, while the broader Topix rose 2.5% to 3,648.78. After several sessions of pressure, the move felt like a broad relief rally, helped by signs that one of the market’s biggest recent headwinds, energy costs, may be easing at least for now. That mattered especially for Japan. As an economy that depends heavily on imported energy, Japan tends to feel any change in oil prices quickly. When crude rises, it feeds into business costs, household spending and imported inflation. When it pulls back, even modestly, the market tends to respond. WTI crude fell $1.28, or 1.24%, to $101.60 per barrel, following reports that Washington was pushing for a diplomatic reopening of the Strait of Hormuz. That gave investors a reason to step back into risk, particularly in sectors more exposed to domestic demand and input costs. The strength of the rebound was also supported by the latest BOJ Tankan survey, which came in better than expected. Large manufacturers’ sentiment rose to +17 in March, ahead of the +16 forecast, while large non-manufacturers came in at +36, comfortably above the expected +33. Reuters also reported that large firms plan to increase capital spending by 3.3% in fiscal 2026, compared with a 3.0% median forecast. Taken together, the data suggested that corporate Japan is still holding up reasonably well, even after the recent energy shock. Global markets added another layer of support. Wall Street delivered a strong lead, with the Nasdaq up 3.8%, the S&P 500 up 2.9%, and the Dow up 2.5%. European markets also finished higher, helping to improve the broader risk tone across regions. At the same time, the yen traded near 158.55 per dollar, firmer than the 160.46 low seen earlier this year. A steadier yen can help reduce some of the pressure from imported inflation, although it also softens part of the export advantage that comes with a weaker currency. From a technical standpoint, the Nikkei is showing signs of stabilising after retreating from the 60,077 high. Price has recovered towards 53,130, but the index is still trying to push back through important resistance levels. Explore how oil prices, domestic data and global sentiment are shaping the next move for the Nikkei 225.

Learn more

Publication date:

2026-04-01 06:23:41 (GMT)

The terms and conditions of use set out below (referred to as "FX Blue's Terms"), form a contractual agreement governing FX Blue's relationship with you in relation to your use of this Website (“Agreement”) and you agree to be legally bound by FX Blue's Terms just as if you had signed this Agreement. By using this Website and any Information, you are agreeing to comply with and be bound by FX Blue's Terms, including any revisions that may be made to FX Blue's Terms from time to time. FX Blue reserves the right, in FX Blue's sole discretion, to change, modify, add or remove portions of FX Blue's Terms at any time by posting the revisions on the Website. You should check FX Blue's Terms periodically for changes as by using the Website after FX Blue posts any changes to FX Blue's Terms, you are agreeing to accept those changes, whether or not you have reviewed them, and you waive any right you may have to receive individualised notice of such changes. FX Blue's Terms may be supplemented by additional terms and conditions pertaining to specific content and activities. You agree and understand that such additional terms and conditions are hereby incorporated by reference to FX Blue's Terms. Your continued use of the Website means that you accept any new or modified FX Blue Terms.