Japanese Stocks Jump on U.S.-Iran Ceasefire

Tokyo, April 8 (Jiji Press)–Japanese stocks surged in Tokyo trading Wednesday thanks to a U.S.-Iran ceasefire deal, sending the benchmark Nikkei 225 index climbing 5.38 pct. The Nikkei index rose 2,878.86 points to 56,308.42, marking its third-largest single-day point gain and ending above 56,000 for the first time since March 3. Investors welcomed the announcement of a two-week ceasefire by the United States and Iran. “The likelihood of the Middle East conflict coming to an end increased,” an official at a Japanese asset management firm said. An official at a Japanese securities house said, “Investors are shifting to a risk-on stance.” Some remained cautious, however. An official at a major securities firm said: “There are lingering concerns that the conflict could become prolonged unless there is a proposal to end the hostilities that the United States and Iran can agree to during the two-week halt in fighting. It also remains unclear whether crude oil supply will return to pre-conflict levels.” In Tokyo foreign exchange trading, the dollar plunged as the trend of safe-haven dollar-buying reversed. At 4 p.m., the U.S. currency stood at 158.19-20 yen, down from 159.85-87 yen at 5 p.m. Tuesday. Japanese government bonds drew buybacks on the back of a plunge in crude oil futures, sending the yield on the most recent issue of 10-year JGBs briefly slipping to 2.355 pct. END [Copyright The Jiji Press, Ltd.]