Global Markets | Japan's Nikkei surges as Trump claims US negotiating end to Iran war

Japan's Nikkei share average rose the most in a week on Wednesday, supported by cautious optimism that the Middle East crisis could move toward a potential settlement after recent volatility.

The benchmark Nikkei 225 Index rose 2.87% to close at 53,749.62, its ‌biggest percentage ⁠gain ⁠since March 18. The broader Topix climbed 2.57% to 3,650.99. U.S. President Donald ​Trump said on Tuesday the U.S. was making progress in its efforts to ​negotiate an end to the war with Iran. Like many global markets, Japanese stocks have gyrated amid conflicting signals about whether ​the crisis is escalating or an off-ramp to ⁠hostilities. Because of ‌its dependence on imported energy, Japan's economy ​is particularly vulnerable ​to the conflict's impact on oil shipments and ⁠prices. The sharp decline in crude on Wednesday appeared ​to be the trigger for a jump ​in the Nikkei, said Wataru Akiyama, a strategist at Nomura Securities.

"Expectations for a lowering of tensions in the Middle East appear to be driving the stock market higher," Akiyama said. "However, the sense of uncertainty has not yet been completely eliminated."


Japan's Nikkei ‌225 saw broad-based gains, with 203 advancers against 22 decliners.

Leading the rally was Tokio Marine Holdings, which surged ​14.6% and ​climbed for a ⁠second consecutive session after Berkshire Hathaway disclosed it had acquired a stake in the insurer.

It was followed by strong performances from Furukawa Electric, ​which rose 11.2%, and SoftBank Group , up 7.9%. Both companies have benefited from momentum in artificial intelligence investments.

On the downside, Recruit Holdings led decliners with a 1.9% drop, followed by energy explorer Inpex Corp, which shed 1.7%.