JAKARTA - The Nikkei 225 Japanese index hit a record high on Thursday amid a rally in Asian markets, as market expectations grew for a possible deal between the United States and Iran. CNBC quoted Thursday, April 16 reported, that sentiment also contributed to the strengthening of Wall Street and contained oil price volatility.
The Nikkei 225 rose 2.19 percent after hitting a new high. The rise in the Japanese index was supported by technology stocks and cyclical consumer stocks. Daikin Industries was the biggest boost after activist investor Elliott Investment Management encouraged the company to improve its performance and narrow its valuation gap with competitors. The Topix index also rose 1.33 percent.
Market strength this week was driven by expectations that tensions between Washington and Tehran could ease. President Donald Trump in an interview with Fox Business aired Wednesday said the Iran war "is very close to ending" and claimed Tehran is eager to reach an agreement.
According to a CNBC report, a White House official also said that a second round of negotiations between the United States and Iran was being discussed, although there was no official schedule.
In the energy market, oil prices are fluctuating. West Texas Intermediate rose 0.39 percent to 91.65 US dollars per barrel. Meanwhile, Brent was relatively flat at 94.96 US dollars per barrel.
The strengthening also occurred in other Asian exchanges. South Korea's Kospi rose 1.96 percent and Kosdaq strengthened 1.36 percent. India's Nifty 50 added 0.56 percent. The mainland China CSI 300 index rose 0.90 percent, while Hong Kong's Hang Seng strengthened 1.41 percent.
Australia was an exception. The S&P/ASX 200 index fell 0.32 percent, although labor data showed employment rose 1.4 percent in March compared with a year earlier and the unemployment rate remained at 4.3 percent.
Market sentiment is also supported by Chinese economic data. China's gross domestic product grew 5 percent in the first quarter, higher than the 4.5 percent in the previous quarter and surpassing economists' forecast of 4.8 percent in a Reuters poll. The growth was supported by strong exports, although the outlook is still overshadowed by energy shocks due to the Iran war and weak domestic demand.
On Wall Street, the S&P 500 rose 0.80 percent to 7,022.95 and the Nasdaq jumped 1.59 percent to 24,016.02. Both closed at record highs. The Dow Jones Industrial Average was down 0.15 percent at 48,463.72.
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