Nikkei Rallies over 2,000 Points in Morning

Tokyo, April 1 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average gained more than 2,000 points Wednesday morning on hopes that the conflict in the Middle East is drawing to an end. The index of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section finished the morning session at 53,128.33, rising 2,064.61 points, or 4.04 pct, from Tuesday’s closing. The Nikkei reached as high as 53,273.09 at one point with a gain of some 2,200 points, after shedding over 2,600 points in a four-session slide through Tuesday. Investor sentiment brightened after both the United States and Iran signaled their willingness to conclude the conflict soon. U.S. President Donald Trump reportedly hinted at the possibility of ending his country’s military operations against Iran even if the Strait of Hormuz, a key oil transport waterway, remains closed. With a drop in crude oil prices also improving the market mood, investors are “unwinding their risk-off selling,” an official at a Japanese securities firm said. “We may be able to avoid the escalation of fighting in the Middle East and further increases in crude oil prices, but the issue of the de facto closure of the Strait of Hormuz remains,” an official at a major securities house said. Technology names especially attracted buying, with Advantest and SoftBank Group finishing the morning up 9.35 pct and 4.67 pct, respectively. On the Tokyo foreign exchange market Wednesday, the dollar weakened against the yen as investors reversed their safe-haven buying of the U.S. currency. At noon, the greenback stood at 158.72-74 yen, down from 159.62-63 yen at 5 p.m. Tuesday. END [Copyright The Jiji Press, Ltd.]