Global Markets | Japan's Nikkei jumps to record high on Mideast peace hopes; Daikin surges
Optimism over easing Middle East tensions pushed Japan’s Nikkei to record highs, with strong gains in Daikin Industries driving the rally.
By Reuters |
Reuters
Japan's Nikkei share average jumped to an all-time high on Thursday as hopes brightened for negotiations to end the war in the Middle East, sending oil prices lower.
The benchmark Nikkei 225 Index rose 2.38% to close at a record high 59,518.34. The intraday peak of 59,518.34 eclipsed the previous record achieved on February 26 in the days before the Middle East conflict broke out. The broader Topix climbed 1.17% to 3,814.46.
A Pakistani mediator in Tehran and the administration of U.S. President Donald Trump on Thursday talked about the possibility of a deal that would open the crucial Strait of Hormuz. Trump said leaders of Lebanon and Israel will speak after more than six weeks of armed conflict.
Major Wall Street indexes closed at record highs overnight, while the Philadelphia SE semiconductor index rose 0.16%. U.S. West Texas Intermediate (WTI) crude futures held steady at about $91.53 per barrel, well below the recent peak of $117.63 seen last week.
"Against the backdrop of reduced geopolitical risks, WTI crude futures have fallen to around $90, making Japanese stocks more attractive for value-driven buying," Hiroshi Watanabe, a senior economist at Sony Financial Group, said in a note.
"The SOX index, which tracks semiconductor stocks and has been hitting new highs for consecutive days, is also likely to provide a boost to the market."
There were 159 advancers on the Nikkei index against 64 decliners. Among the biggest gainers was Daikin Industries, which surged 9.1% after Elliott Investment Management said it had taken a stake in the air-conditioner maker.
The two largest losers on the Nikkei were construction equipment makers, with Komatsu falling 5.4% and Kubota declining 5.2%.
The benchmark Nikkei 225 Index rose 2.38% to close at a record high 59,518.34. The intraday peak of 59,518.34 eclipsed the previous record achieved on February 26 in the days before the Middle East conflict broke out. The broader Topix climbed 1.17% to 3,814.46.
A Pakistani mediator in Tehran and the administration of U.S. President Donald Trump on Thursday talked about the possibility of a deal that would open the crucial Strait of Hormuz. Trump said leaders of Lebanon and Israel will speak after more than six weeks of armed conflict.
Major Wall Street indexes closed at record highs overnight, while the Philadelphia SE semiconductor index rose 0.16%. U.S. West Texas Intermediate (WTI) crude futures held steady at about $91.53 per barrel, well below the recent peak of $117.63 seen last week.
"Against the backdrop of reduced geopolitical risks, WTI crude futures have fallen to around $90, making Japanese stocks more attractive for value-driven buying," Hiroshi Watanabe, a senior economist at Sony Financial Group, said in a note.
"The SOX index, which tracks semiconductor stocks and has been hitting new highs for consecutive days, is also likely to provide a boost to the market."
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There were 159 advancers on the Nikkei index against 64 decliners. Among the biggest gainers was Daikin Industries, which surged 9.1% after Elliott Investment Management said it had taken a stake in the air-conditioner maker.
The two largest losers on the Nikkei were construction equipment makers, with Komatsu falling 5.4% and Kubota declining 5.2%.
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