Nikkei Retakes 53,000 on Hopes for Early End to Iran Conflict

Tokyo, April 1 (Jiji Press)–Tokyo stocks rebounded sharply Wednesday on growing expectations for an early end to the conflict between the U.S.-Israeli side and Iran, with the benchmark Nikkei 225 index retaking 53,000 for the first time in three days. The index of 225 selected issues listed on the Tokyo Stock Exchange’s top-tier Prime section ended at 53,739.68, up 2,675.96 points, or 5.24 pct, from Tuesday, logging the fourth-largest single-day point gain on record. The index closed higher for the first time in five business days. On the Prime section, 1,535 issues, or about 97 pct of the total, posted gains, while only 27 issues ceded ground. Eleven issues were flat. With the United States and Iran reported to be open to a ceasefire, crude oil futures prices dropped and investors’ sentiment improved. “Market players are increasingly expecting that the Middle East situation will move in a positive direction” following media reports that U.S. President Donald Trump will deliver an address on Iran on Thursday Japan time, an official of a bank-affiliated securities house said. Trump has reportedly indicated that he would halt the U.S. military operations against Iran even if the Strait of Hormuz, a major Middle East oil shipping route, remains virtually blockaded. “I think that Trump does not want to drag out the conflict further,” a brokerage official said. “Stock prices may have bottomed out.” Meanwhile, a think tank official warned, “Market players are a little too optimistic although crude oil transport (from the Middle East) has been disrupted,” adding, “Investors would likely sell on rallies if stock prices rise further.” END [Copyright The Jiji Press, Ltd.]