Mumbai, June 15 -- Japanese equities rallied strongly on Monday, with the Nikkei 225 soaring 4.99% to a record closing high of 69,317. Investor sentiment was boosted by reports of a breakthrough agreement between the US and Iran that could end the conflict and reopen the Strait of Hormuz, a key global oil shipping route.

Oil prices fell to their lowest level in two months following the news, easing inflation concerns and reducing input costs for Japan, which relies heavily on energy imports. Investors are also looking ahead to this week's Bank of Japan meeting, where policymakers are widely expected to raise interest rates to help curb inflation and strengthen the yen.

Market optimism was further supported by SpaceX's strong market debu...