Japan's Nikkei rises to near record high on Mideast peace hopes; Daikin surges
Optimism over easing Middle East tensions pushed Japan’s Nikkei near record highs, with strong gains in Daikin Industries boosting the index.
By Reuters |
Reuters
Japan's Nikkei share average climbed to the brink of an all-time high on Thursday as hopes brightened for negotiations to end the war in Iran, sending oil prices lower.
The benchmark Nikkei 225 Index rose 1.54% to 59,030.78, nearing the all-time high of 59,332.43 reached on February 26 in the days before the Middle East conflict broke out. The broader Topix climbed 0.96% to 3,806.47.
The White House expressed optimism on Wednesday about reaching a deal to end the war with Iran. 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 slid 0.36% to $90.96 a barrel, and Brent declined to $94.68 per barrel, down 0.26% on the day.
"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 175 advancers on the Nikkei index against 45 decliners. The largest gainers in the index were Trend Micro Inc , up 10.8%, followed by Daikin Industries, which surged 10.6% after Elliott Investment Management said it had taken a stake in the air conditioner maker.
The three largest losers on the Nikkei were all construction equipment makers. Kawasaki Heavy Industries slid 5.1%, while Kubota lost 5% and Komatsu retreated 4.8%.
The benchmark Nikkei 225 Index rose 1.54% to 59,030.78, nearing the all-time high of 59,332.43 reached on February 26 in the days before the Middle East conflict broke out. The broader Topix climbed 0.96% to 3,806.47.
The White House expressed optimism on Wednesday about reaching a deal to end the war with Iran. 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 slid 0.36% to $90.96 a barrel, and Brent declined to $94.68 per barrel, down 0.26% on the day.
"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 175 advancers on the Nikkei index against 45 decliners. The largest gainers in the index were Trend Micro Inc , up 10.8%, followed by Daikin Industries, which surged 10.6% after Elliott Investment Management said it had taken a stake in the air conditioner maker.
The three largest losers on the Nikkei were all construction equipment makers. Kawasaki Heavy Industries slid 5.1%, while Kubota lost 5% and Komatsu retreated 4.8%.
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