Japan 225 Rises as Peace Optimism and Soft Inflation Lift Sentiment

On May 22, the Japan 225 advanced alongside other Asian equities as renewed hopes for a U.S.-Iran diplomatic deal and a four-year low in Japanese core inflation supported risk appetite. The move follows the sharp May 20-21 rally triggered by President Trump’s comments on negotiation progress, falling crude prices after tankers transited the Strait of Hormuz, and broad gains across the Nikkei (+3.3%), Kospi (+5.8%), and S&P/ASX 200 (+1.3%). Regional bond yields eased while gold remained elevated above $4,500, reflecting lingering safe-haven demand amid the evolving geopolitical backdrop.