Key Takeaways
- Nikkei 225 jumps through 62,000 for the first time in history
- Asian markets rally on hopes of easing Middle East tensions
- Gains follow a strong session on Wall Street, with the Dow adding 600 points
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Nikkei 225 soars past 62,000 for first time on Middle East relief
(P1) Japan’s Nikkei 225 surged through the 62,000 level for the first time on Thursday, leading a broad Asian market rally as investors embraced hopes that geopolitical tensions in the Middle East may be easing.
(P2) "A calmer Middle East is the perfect excuse for a relief rally," said Chihiro Ohta, General Manager of Investment Research at SMBC Nikko Securities. "There was a sense of relief that the situation in the Strait of Hormuz would not worsen."
(P3) The benchmark index rose as much as 1.2% to an intraday high of 62,145 before closing at 62,089. The broader Topix index also gained, adding 0.9%. The rally was broad-based, with technology and industrial stocks leading the gains. The rally tracked a strong handover from Wall Street, where the Dow Jones Industrial Average jumped 600 points.
(P4) The focus now shifts to whether the rally has legs. The key is whether the de-escalation narrative holds, which could keep a lid on oil prices and support import-dependent economies like Japan. The Japanese yen traded slightly weaker against the dollar at 155.20.
Geopolitical Hopes Fuel Rally
Asian markets opened Thursday with a powerful relief bid, as investors leaned into hopes that tensions in the Middle East may ease enough to keep the Strait of Hormuz open. Japan set the tone, with the Nikkei 225 vaulting through 62,000 for the first time, while broader regional equities also pushed higher. The MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.8%.
The positive sentiment was also fueled by a US-Iran deal hope, which lifted stocks in the prior session. The Dow Jones Industrial Average jumped 600 points, and the S&P 500 and Nasdaq Composite also registered strong gains.
This article is for informational purposes only and does not constitute investment advice.
[1] Nikkei 225 crosses 62,000 as Asian markets rally on relief hopes[2] Japan’s Nikkei surpasses 62,000 points for first time[3] Japan's Nikkei roars past 62,000 on earnings, Middle East optimism; JGBs rally[4] Japan's Nikkei 225 tops 62,000 for the first time as Asia markets look past Trump’s Iran threats
