TOKYO: Japan’s blue-chip share average jumped by the most in a year, while the country’s bonds and currency rallied on Wednesday, as the US-Iran ceasefire agreement drove crude oil prices sharply lower and eased concerns of an economic slowdown.
The Nikkei 225 Index rose 5.39 percent to 56,308.42, climbing for a fourth straight day to hit its highest close since March 2. The yield on the benchmark Japanese government bond (JGB) fell 4 basis points (bps) to 2.365 percent after hitting a 27-year high on Tuesday.
More than five weeks after the US and Israel began aerial bombardments of Iran, US President Donald Trump said he had agreed to a two-week halt of hostilities just before a deadline he had set for Tehran to reopen the critical oil shipping lane of the Strait of Hormuz.
Iran’s Supreme National Security Council portrayed the deal as a victory, claiming Trump had accepted Iran’s conditions for the pause.
Pakistan’s role as an intermediary between the US and Iran gives the agreement a degree of credibility, contributing to market optimism, said Shingo Ide, chief equity strategist at NLI Research Institute.