Nikkei Average Marks Record Closing High above 69,000

Tokyo, June 15 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average shot up to a new all-time closing high on Monday, propelled by risk appetite fueled by a U.S.-Iran agreement to end their ongoing armed conflict. The index of 225 major issues listed on the Tokyo Stock Exchange’s top-tier Prime section surged 3,297.46 points, or 4.99 pct, from Friday to end at 69,317.50, finishing above 69,000 for the first time ever and posting the second-largest daily point gain on record. The broader TOPIX index surged 117.64 points, or 3.03 pct, to 3,999.60, also a record closing high. Investors rushed to buy a wide range of stocks from the outset, following U.S. President Donald Trump’s announcement that a deal had been reached to end the U.S.-Iran conflict. With the announcement easing uncertainties over the Middle East situation, an official of a major brokerage firm said, “Rising prices and interest rates caused by higher crude oil prices that had weighed on the stock market are now expected to go away.” “The outlook for the global economy and corporate earnings will likely improve” if the de facto blockade of the Strait of Hormuz, a key oil chokepoint, is lifted and the supply of crude oil returns to normal, said an official of a Japanese securities firm. Another brokerage firm official said that the Nikkei average may reach 70,000 on Tuesday as the European and U.S. stock markets are also expected to react positively to the announcement on Monday. END [Copyright The Jiji Press, Ltd.]