Nikkei Surges Past 69,700 as US-Iran Deal Triggers Global Rally

Japan's Nikkei index broke through 69,700 for the first time on Monday, rising by over 5% as a US-Iran deal to end their conflict sparked a broader stock market rally. The benchmark added approximately $465 billion in market value, or around 77.22 trillion yen, reaching an intraday high of 69,705.

The agreement between the US and Iran halted the US naval blockade of Iran and reopened the Strait of Hormuz, a key oil route. Crude prices fell on the news, with West Texas Intermediate declining by about 4.6% and Brent Crude off roughly 5%. Stocks and cryptocurrencies moved in the opposite direction.

US equity futures pointed sharply higher, with Dow Jones Industrial Average futures up 342 points, or 0.7%, while contracts tied to the S&P 500 gained 0.9%. Nasdaq 100 futures led the way with a 1.4% rise. Asian benchmarks posted significant gains, with South Korea's KOSPI topping the region with a 5.46% surge and Japan's Topix climbing 3.3%.

Digital assets also joined the advance, with the total crypto market capitalization rising close to 2%. Bitcoin (BTC) pushed toward 66,000. However, sentiment could shift quickly as the Bank of Japan is widely expected to raise its policy rate to 1% from 0.75% on Tuesday.