Nikkei Briefly Soars over 2,800 Points in Morning

Tokyo, April 8 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average briefly surged over 2,800 points to top the 56,000 line for the first time in about a month on Wednesday morning, after the United States and Iran agreed to a ceasefire and crude oil futures prices plummeted. The index of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section finished the morning session at 56,078.83, still up 2,649.27 points, or 4.95 pct, from Tuesday. It last stood above 56,000 on March 5 on an intraday basis. U.S. President Donald Trump announced a two-week suspension of attacks on Iran on Tuesday and Iran was reported to have also agreed to a ceasefire, sending U.S. benchmark West Texas Intermediate crude oil futures temporarily plunging below 92 dollars per barrel. Investors welcomed the development and stepped up buying of a wide range of Tokyo stocks. “Hopes that the Middle East situation will move toward a resolution are supporting market sentiment, with investors tilting toward a risk-on posture,” a Japanese securities company official said. At the same time, uncertainty over the outlook persists, with a major securities firm official warning, “Crude oil prices could remain high.” In Tokyo foreign exchange trading, the dollar fell sharply to below 159 yen on Wednesday morning, as the trend of safe-haven dollar-buying reversed. At noon, the U.S. currency stood at 158.42-43 yen, down from 159.85-87 yen at 5 p.m. Tuesday. Meanwhile, Japanese government bonds drew buybacks on the back of the plunge in crude oil futures. In Tokyo interdealer trading, the yield on the most recent issue of 10-year Japanese government bonds, regarded as the country’s benchmark long-term interest rate, which hit a 27-year high of 2.430 pct on Tuesday, slipped to 2.355 pct on Wednesday morning. END [Copyright The Jiji Press, Ltd.]