The Nikkei 225 stock average topped 70,000 for the first time Tuesday as peace negotiations advanced in the Middle East and after the Bank of Japan voted to raise its benchmark rate to 1%, from 0.75%.
With the U.S. and Iran reaching an interim agreement that will reopen the Strait of Hormuz, the price of oil continued to fall. West Texas Intermediate crude and Brent crude are both down about a third from recent peaks, as is naphtha.??
The Nikkei 225 rally has been swift ¡ª the index took less than two months to climb from 60,000, a level it first breached on April 23, to 70,000. Japan¡¯s benchmark stock index is now up more than 80% over the past year.?
On Tuesday morning, the index was range-bound below 70,000, and then broke through in a dramatic run after the central bank announced its rate decision just after noon. The Nikkei 225 hit 70,020.68, the new all-time high, at 12:45 p.m.
The run was short-lived, with stocks falling back quickly after breaking through 70,000, and the index ended the day at 69,404.50, up 0.13%.???
Artificial intelligence and semiconductor-related stocks continued to gain ground, helped along by an overnight rally in the U.S. markets, where the Philadelphia Semiconductor Index hit a record and Nasdaq composite surged 3%.
The key question for the market going forward is whether the risk factors stemming from Middle East tensions have been effectively resolved, as no text of the U.S.-Iran agreement has been released.
The two countries are expected to sign a memorandum of understanding in Switzerland on Friday.
¡°The Deal with the Islamic Republic of Iran is now complete,¡± U.S. President Donald Trump posted on Truth Social on Monday.
¡°Ships are starting to move, many loaded up with Oil, out of the Strait of Hormuz.¡±
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.