TOKYO: Japan’s Nikkei share average rose on Tuesday after US President Donald Trump said Iran and Israel agreed to a ceasefire, which boosted global investors’ risk appetite.
The Nikkei ended 1.14% higher at 38,790.56 after touching 38,990.11, its highest since mid-February. The broader Topix rose 0.73% to 2,781,35.
Trump late on Monday announced a complete ceasefire between Israel and Iran, potentially ending the 12-day war that saw millions flee Tehran and prompted fears of further escalation in the war-torn region.
“Following Trump’s announcement, the market turned to risk on,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.
Technology stocks led gains on the Nikkei, with start-up investor SoftBank Group jumping 5.58%. Chip-making equipment maker Tokyo Electron rose 3.65%. “But the yen’s gains against the US dollar capped the Nikkei’s gains,” Yasuda said.
The dollar fell after the news of the ceasefire, pushing the yen up 0.7% to 145.15. The yen fell to as low as 148 per dollar, its weakest in more than a month.