Tokyo Stocks Jump amid Hopes for Iran Ceasefire

Tokyo, March 25 (Jiji Press)–Tokyo stocks jumped on Wednesday amid growing expectations for a ceasefire agreement between the U.S.-Israeli side and Iran. The Nikkei 225 stock average surged1,497.34 points, or 2.87 pct, from the previous day to close at 53,749.62. The broader TOPIX index rose 91.32 points, or 2.57 pct, to 3,650.99. The Tokyo market was buoyed by broad-based purchases as investor sentiment improved amid hopes for de-escalation in the situation in the Middle East. Market players welcomed Tuesday’s New York Times report that the United States has presented a ceasefire plan to Iran, as well as Israeli media reports the same day that the United States was requesting a one-month truce to discuss the plan. The market was also encouraged by a decline in crude oil prices after Tehran reportedly said it would allow vessels of non-hostile countries to pass through the Strait of Hormuz. “Specific reports about ceasefire talks increased the credibility (of negotiations between the United States and Iran),” an official at a Japanese asset management firm said. However, continued uncertainty over the Middle East situation limited the stock market’s upside. “The market rose just on hopes,” said a Japanese bank official. “Investors had no choice but to lean toward risk-on mode while perceiving uncertainties.” “Institutional investors are refraining from active trading ahead of the end of the fiscal year” on Tuesday, the bank official added. Semiconductor-related issues and other technology stocks especially attracted buying following the overnight gains of their U.S. peers. Chip test device maker Advantest rose 4.83 pct, while tech investor SoftBank Group soared 7.90 pct. END [Copyright The Jiji Press, Ltd.]