Japan's Nikkei soars on optimism about Iran peace plan
The Nikkei average rose by a little over 3% on Wednesday. This was due to cautious optimism that the Middle East Crisis could be moving toward a possible settlement following recent volatility.
The Nikkei 225 Index, the benchmark index, grew by 2.93% to reach 53784.43. The Topix index rose 2.5% to 3,648.78.
Donald Trump, the U.S. president, said that on Tuesday that the U.S. is making progress in its negotiations to end war with Iran. Like many other global markets, Japanese stock prices have fluctuated on signs of conflicting escalation or an end to hostilities.
Japan's economy, which is heavily dependent on imported energy, is especially vulnerable to the impact of conflict on oil shipments. Wataru Akiyama is a Nomura Securities strategist. He said that the sharp drop in crude prices on Wednesday was the 'trigger' for a rise in the Nikkei.
Akiyama stated that "expectations of a reduction in tensions in the Middle East seem to be driving up the stock market." "However the feeling of uncertainty has not been eliminated completely," Akiyama said.
Nikkei's 225 index saw a broad range of gains. 211 stocks advanced compared to just 14 decliners.
Tokio marine Holdings led the rally, with a?9.8% surge and a?climb for the second session in a row after Berkshire Hathaway announced it had purchased a stake?in the insurance.
SoftBank Group and Furukawa Electric followed with strong performances. Both companies benefitted from the?continued momentum of artificial intelligence-related investments.
The session's biggest loser was Inpex Corporation, down 2.6%. Nomura Research Institute followed, with a 2.2% decline.
(source: Reuters)
