Nikkei Average Surges to Hit Record High above 69,000

Tokyo, June 15 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average briefly soared over 3,600 points to hit a record intraday high above 69,000 in Monday morning trading, as investors cheered U.S. President Donald Trump’s announcement that a deal had been reached to end the conflict between the United States and Iran. After rising as high as 69,682.23, the index of 225 major issues listed on the Tokyo Stock Exchange’s top-tier Prime section finished the morning session at 69,593.64, up 3,573.60 points, or 5.41 pct, from Friday’s closing. It topped 69,000 for the first time. Tokyo stocks attracted buying almost across the board from the outset of the day’s trading. On the U.S.-Iran ceasefire deal, an official at a foreign-affiliated securities firm said, “This time, it’s likely real.” Expectations that turmoil in the Middle East, widely regarded as one of the biggest risk factors for the global economy, would subside led to broad-based buying of Tokyo equities. With crude oil futures prices plunging on the news of the ceasefire deal, expectations spread for a recovery in Japan’s economy, given its reliance on energy imports, as well as for lower corporate costs, market sources said. While recent stock market rises had been driven by artificial intelligence- and semiconductor-related issues, buying has now spread beyond these sectors on hopes that shipping through the Strait of Hormuz, a key chokepoint for energy transport, will return to normal and crude oil prices will stabilize, a major securities firm official said. In Tokyo currency trading on Monday morning, the dollar briefly slipped below 160 yen, down from 160.27-28 yen at 5 p.m. on Friday, as moves to unwind safe-haven dollar buying positions took the upper hand. The yen’s gains were limited, however, as there was also a strong mood among market participants to wait and see the outcomes of this week’s policy meetings by the Bank of Japan and the U.S. Federal Reserve, a foreign exchange broker said. At noon, the dollar stood at 160.14-14 yen. END [Copyright The Jiji Press, Ltd.]