The Nikkei 225 Index Closes 0.97% Higher

Asian equity markets advanced on Wednesday as oil prices retreated on growing hopes for a ceasefire in the Middle East. The US was reportedly pursuing diplomatic efforts to end the war with Iran, though investor skepticism lingered after Tehran denied engaging in any negotiations with Washington. Shares in Australia, Japan, and South Korea each rose more than 2%, while equities in China and Hong Kong posted gains of around 1%.

The Nikkei 225 Index surged 2.7% to above 53,600 while the broader Topix Index climbed 2.3% to 3,642 on Wednesday, marking a second straight session of gains as optimism for an end to the prolonged Middle East conflict strengthened on reports that the US was pursuing talks with Iran. Israeli media indicated that Washington was seeking a one-month ceasefire to facilitate negotiations, while the New York Times reported that the US had sent Iran a 15-point proposal to resolve the conflict. Oil prices declined following these developments, offering relief to import-dependent economies like Japan and lifting overall market sentiment. Technology and AI-related stocks led the advance, with notable gains from Kioxia Holdings (3%), Fujikura (5.2%), SoftBank Group (4.6%), Advantest (2.4%), and Tokyo Electron (2.2%).

The Nikkei 225 Index went up by 501 points or 0.97 percent on Tuesday to close at 52017 points. The rise was led by Sumitomo Dainippon (6.70%), Astellas Pharma (5.46%) and Sumitomo Metal Mining (5.18%). On the downside, the weakerst performers were Nintendo Co (-4.12%), Japan Steel Works (-3.69%) and Advantest (-2.42%).