Nikkei Tops 65,000 for First Time in Morning

Tokyo, May 25 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average surged past 65,000 for the first time on Monday morning, 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 briefly gained over 2,000 points from Friday to touch a high of 65,408.87, before finishing the morning session at 65,142.81, up 1,803.74 points, or 2.84 pct. The broader TOPIX index on the TSE also reached a record intraday high, at 3,953.89. U.S. President Donald Trump said in a social media post on Saturday that an agreement with Iran would be announced shortly. Following the comment, crude oil prices plunged. Hopes that shipping through the Strait of Hormuz, a key chokepoint for oil transport, will resume are providing support to the Tokyo stock market as well, 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 soaring crude oil prices would squeeze corporate earnings, along with fears of sluggish consumption due to rising prices, had been weighing on stock markets around the world. Although Trump also said Sunday that he has instructed related officials not to rush a deal with Iran, leaving the outlook for the talks still uncertain, a market source said, “The possibility of an improvement in the situation in the Strait of Hormuz, which had been the biggest drag on investor sentiment, emerged, prompting a strong reaction in stock prices.” END [Copyright The Jiji Press, Ltd.]