Tokyo Stock Exchange Rises 4 Percent, Fueled by Hope that Iran War Will End Soon

Tokyo - Tokyo stocks jumped on Wednesday morning trading, with the Nikkei index rising more than 4 percent after Wall Street strengthened overnight. The rise came after reports emerged that the leaders of the United States and Iran both signaled that the war between the two countries could end soon.

Citing Kyodo News, Wednesday, April 1, the Nikkei 225 index rose 2,064.61 points or 4.04 percent to 53,128.33. Meanwhile, the Topix index strengthened 132.43 points or 3.79 percent to 3,630.29.

The U.S. dollar was trading in the upper 158 yen range by midday, while benchmark West Texas Intermediate crude futures remained relatively low after speculation on a truce intensified.

At midday, the dollar was at 158.72-73 yen, compared with 158.66-76 yen in New York and 159.62-64 yen in Tokyo on Tuesday at 17.00.

The euro was at 1.1568-1569 dollars and 183.57-58 yen, compared with 1.1547-1557 dollars and 183.36-46 yen in New York, and 1.1472-1474 dollars and 183.12-16 yen in Tokyo on Tuesday afternoon.

Shares were bought after falling for four consecutive trading days. Market sentiment improved after US President Donald Trump said on Tuesday that the United States expected the war against Iran to end in two to three weeks.

Another report also said that Iranian President Masoud Pezeshkian signaled that his country was willing to end the war if the conditions he proposed were met.

"The risk of a further spike in crude oil prices will decrease," said Maki Sawada, strategy analyst at the Investment Content Department of Nomura Securities Co., quoted by Kyodo News. However, he added, uncertainty still looms over the reopening of the Strait of Hormuz and oil supplies.