Japan¡¯s benchmark Nikkei 225 stock average soared over 3,100 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.
At 9:36 a.m., the index of 225 selected issues listed on the Tokyo Stock Exchange¡¯s Prime section stood at 69,160.00, up 3,139.96 points?¡ª or 4.76%?¡ª from Friday.
Tokyo stocks attracted buying almost across the board from the outset of the day¡¯s trading.
On the U.S.-Iran deal, an official at a foreign-affiliated securities firm said, ¡°This time, it¡¯s likely real.¡±
Trump said in a social media post he¡¯s authorizing the immediate removal of the Strait of Hormuz¡¯s U.S. naval blockade. Moments earlier, Pakistani Prime Minister Shehbaz Sharif said the agreement between U.S. and Iran would be signed in Switzerland on Friday.
The view from Israel remains unclear, where Prime Minister Benjamin Netanyahu¡¯s government jeopardized a signing at the last minute with new attacks on Lebanon.
¡°In addition to technology shares, buying is also likely to spread to manufacturers and other stocks that had been sold off, helped by lower oil prices,¡± said Shoji Hirakawa, chief global strategist at Tokai Tokyo Intelligence Lab. While the U.S.-Iran peace deal will help boost the market, there is still uncertainty over the timeline for any arrangements regarding nuclear holdings, he said.
After climbing to a record high in early June, the Nikkei 225 dipped after volatile sessions through last week amid shifting Middle East tensions and jitters over a rally by artificial intelligence stocks.
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