Japan’s Nikkei gauge crosses 71,000 on US-Iran peace deal
Sign up now: Get ST's newsletters delivered to your inbox
Japan's Nikkei 225 crosses 71,000 for first time as yen trades at 23 months low on US-Iran deal.
PHOTO: EPA
TOKYO – Japan’s Nikkei share gauge surged past the 71,000 level for the first time on June 18 after the United States and Iran extended their ceasefire, easing geopolitical tensions and supporting risk appetite.
The benchmark Nikkei 225 advanced 1.65 per cent to close at 71,053.49, after touching an intraday high of 71,398.58. The broader Topix gained 1.37 per cent to 4,068.18, also an all-time high.
The US and Iran released the text of an interim agreement to end their war, with US President Donald Trump threatening to resume attacks and kill Iranian officials if they failed to honour their commitments.
Markets in Asia also reacted to a hawkish tilt by the US Federal Reserve, which held interest rates steady. The dollar strengthened broadly, while the yen touched a near two-year low, approaching levels that prompted Tokyo to intervene in markets.
“The Nikkei 225 has risen by more than 5,700 over the past five trading days, making profit-taking likely due to short-term overheating,” Takayuki Miyajima, senior economist at Sony Financial Group, said in a note.
“Growth expectations for AI and semiconductor-related stocks are likely to continue supporting the market. Furthermore, falling crude oil prices and hopes for an improvement in the situation in the Middle East could provide a tailwind for Japanese stocks.”
Chip-related shares led the Nikkei’s gain, with Murata Manufacturing and Screen Holdings jumping 8.10 per cent and 7.21 per cent, respectively. Banks also advanced, supported by Mitsubishi UFJ Financial Group, which rose 3.12 per cent.
Among the laggards, non-ferrous metals and oil-related sectors declined.
The market breadth was overwhelmingly positive, with 136 advancers in the Nikkei 225 against 84 decliners and five unchanged. REUTERS
