The Nikkei Average, which had fallen as expectations for de-escalation in the Middle East receded, recovered to the ¥70,000 range at the close for the first time in approximately 3 months. Some market participants believe that higher crude oil prices and expectations of rate hikes will continue to affect its future course.
The Nikkei Average recovered to the ¥70,000 range at the close on the 6th. The background included the fact that it had broken above ¥70,000 at the close on 18 June, and one week later recorded an all-time high with a closing price of ¥72,366.
However, higher crude oil prices and expectations that central banks in various countries would raise rates early due to inflation became a drag amid stalled ceasefire negotiations, and the index remained in the ¥60,000 range for approximately three months after 1 July.
During this period, the recovery in stock-price levels was affected by the retreat in expectations for stability in the Middle East. Views have been expressed that crude oil-price trends and the outlook for monetary policy will determine future market movements.
The future course remains uncertain, but central-bank monetary policy and trends in resource markets could affect the direction of stock prices.