TOKYO: Japan’s Nikkei share average rose on Tuesday as investors’ risk appetite was boosted after US President Donald Trump said Iran and Israel agreed to a ceasefire.
As of 0212 GMT, the Nikkei rose 1.1% to 38,778.71, while the broader Topix rose 0.78% to 2,782.78.
Trump said a “complete and total” ceasefire between Israel and Iran will go into force with a view to ending the 12-day conflict between the two nations, moments after both sides threatened new attacks.
“Following Trump’s announcement, the market turned to risk on,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory. Technology stocks led the gains on the Nikkei, with chip-making equipment maker Tokyo Electron climbing 4.4% to boost the index the most.
Technology investor SoftBank Group advanced 4.7%.
“But the yen’s gain against the dollar capped the Nikkei’s gains,” Yasuda said.
The dollar fell following the news, pushing the yen up 0.3% at 145.585.
The yen fell to as low as 148 per dollar in its lowest in more than a month in the previous session.
A stronger Japanese currency tends to hurt shares of exporters, as it decreases the value of overseas profits in yen terms when firms repatriate them to Japan.
Honda Motor lost 0.39% while Nissan Motor slipped 0.29%. Energy stocks fell as US crude futures tumbled, with Inpex falling 5.6% to be the worst percentage loser on the Nikkei.
Oil refiner Eneos Holdings slipped 1.98%.
Shipping firms also fell, with Kawasaki Kisen and Mitsui OSK Lines losing 1.94% and 1.58%, respectively.
Of more than 1,600 stocks trading on the Tokyo Stock Exchange’s prime market, 69% rose and 26% fell, with 4% trading flat.
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