On October 10th, the Tokyo stock market saw a significant rebound in the Nikkei average, which rose by over 1600 yen to exceed 54,300 yen at one point during the trading session. This surge was driven by reduced tensions regarding the situation in Iran, leading to a sharp decline in oil prices. The previous day, U.S. stock indices had also rebounded, leading to increased buying activity in Japanese stocks after a period of substantial declines.

The rise in U.S. markets included a gain of 239.25 points (0.50%) for the Dow Jones Industrial Average, marking its first increase in three trading days. Broader market sentiment shifted positively as several sectors, including technology, materials, and healthcare, experienced buying pressure. President Trump stated in an interview on CBS that he believed the situation with Iran was nearing an end, which in turn alleviated concerns over geopolitical tensions in the Middle East, contributing to the upward movement in stock prices.

In tandem with the stock market surge, oil prices dipped significantly. The price of U.S. crude futures, which had previously soared to nearly $119 per barrel (the highest in almost 3 years and 9 months) on October 8, fell to around $81 due to the easing of supply concerns and proactive measures discussed by the G7 finance ministers aimed at coordinated oil stock releases. This combination of rebounding stock metrics and falling oil prices strengthened market confidence in Japan and globally, allowing for a swift recovery in the Nikkei index.