Japan’s Nikkei share average rallied on Tuesday to levels not seen since the start of the war in Iran as optimism over negotiations to end the conflict sentoil priceslower.
The benchmark Nikkei 225 Index jumped 2.53% to 57,932.07, the highest since March 2, while the broader Topix climbed 1.11% to 3,764.26.
The Nikkei closed at an all-time high on February 26, the day before the U.S. and Israel began aerial bombardments of Iran that has halted nearly all oil shipments from the region.
Although ceasefire talks over the weekend broke down, U.S. Vice President JD Vance said in an interview with Fox News that progress has been made in negotiations and the U.S. expects Iran will proceed with reopening the Strait of Hormuz shipping lane.
U.S. crude fell 1.9% to $97.20 a barrel and Brent oil fell to $97.93 per barrel, down 1.44% on the day.
“Of course, there is a risk that the situation could deteriorate again, but withmarket sentimentsomewhat calmer, the focus will shift tocorporate earnings, which are set to pick up momentum,” said Maki Sawada, an equities strategist at Nomura Securities.
“Whether the Nikkei will return to the levels seen before the conflict began will depend on results starting in late April.”
There were 162 advancers on the Nikkei index against 62 decliners. Semiconductor-related companies and firms in the artificial intelligence sector, which has massive energy needs, were the sharpest gainers.
Chipmaker Kioxia Holdings led gains on the Nikkei, rising 14.6%, followed by AI investor SoftBank Group, gaining 12.2%, and tech sector supplier Advantest, which jumped 8.2%.
The largest losers were Archion Corp, down 3%, followed by Inpex, which slid 2.8%.
(You can now subscribe to our ETMarkets WhatsApp channel)
