Nikkei Ends above 65,000 for 1st Time Ever

Tokyo, May 25 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average surged to close above 65,000 for the first time ever on Monday, backed by expectations for an end to the fighting between the United States and Iran. The index of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section ended at 65,158.19, up 1,819.12 points, or 2.87 pct, from Friday. The broader TOPIX index gained 50.11 points, or 1.29 pct, to close at 3,942.57, also a record high. On Saturday, U.S. President Donald Trump said in a social media post that an agreement with Iran would be announced shortly. Following the comment, crude oil prices plunged. Hopes for the resumption of shipping through the Strait of Hormuz, a key chokepoint for oil transport, provided support to the Tokyo stock market, with gains led by semiconductor-related stocks. “Buying by overseas short-term investment funds and individual investors trading on margin is concentrated in heavyweight Nikkei components, including Kioxia Holdings and SoftBank Group, as well as in Nikkei 225 futures,” a bank-affiliated brokerage house official said. Concerns that higher crude oil prices would squeeze corporate earnings, along with fears of sluggish consumption due to rising prices, had weighed on stock markets around the world. Over the weekend, Trump also said that he had instructed related officials not to rush a deal with Iran, leaving the outlook for the talks still uncertain. However, a market source said, “The possibility emerged of an improvement in the situation in the Strait of Hormuz, which had been the biggest drag on investor sentiment, prompting a strong reaction in stock prices.” END [Copyright The Jiji Press, Ltd.]