Risk-On Returns, Nikkei Soars to Month-Long Low
Japanese stocks surged on Wednesday (April 8) after the US, Iran, and Israel agreed to a two-week ceasefire to open up negotiations toward a potential deal to end the war. The Nikkei 225 surged 5.39% to close at 56,308, while the Topix rose 3.32% to 3,775, with both hitting their highest levels in more than a month.
President Donald Trump postponed a planned attack on Iranian civilian infrastructure in what he called a “double-sided ceasefire.” Iran agreed to reopen the Strait of Hormuz for two weeks, with the provision that transit be coordinated with the Iranian Armed Forces. In Japan, Prime Minister Sanae Takaichi is said to be seeking separate talks with the US and Iranian leaders, as she pushes to maintain peace and the security of Japan's energy supply.
The gains were led by technology stocks as risk appetite returned. Kioxia Holdings jumped 18.6%, Advantest 13.6%, Fujikura 11.6%, Disco Corp 7.3%, and SoftBank Group 7.2%. Electric utilities, banking, and automotive stocks also rallied, reflecting improved sentiment after the market assessed that the risk of energy disruptions from the Gulf region had subsided, at least temporarily.
Source: Newsmaker.id
