TOKYO: Japanese shares pared gains on Tuesday as investors remained unconvinced that US President Donald Trump’s comments about holding off on targeting Iran’s energy infrastructure would lead to a breakthrough in the Middle East conflict.
The Nikkei rose 1.4 percent to close at 52,252.28 after rising as much as 2.3 percent earlier in the session. The broader Topix climbed 2.1 percent to 3,559.67 after jumping as much as 2.6 percent.
Trump postponed a threat to bomb Iran’s power grid because of what he described as “productive talks” with unidentified Iranian officials. Iran denied that it had engaged in negotiations with the US, pushing oil prices higher, and launched multiple waves of missiles at Israel.
“Few investors seem to believe the remarks will help calm the situation around the Strait of Hormuz, and many see them as little more than a temporary delaying tactic,” said Tomoichiro Kubota, senior market analyst at Matsui Securities. “So when the market rises, they are quick to take profits.”
The Nikkei benchmark gauge has lost about 11 percent since its February 27 close, before the war erupted.
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