Japan’s Nikkei shares average surged nearly 3% on June 12 as investors snapped up stocks after US President Donald Trump signalled a possible peace deal with Iran, easing concerns over disruptions to global energy supplies.
According to Reuters, the Nikkei climbed 2.81% to close at 66,020.04, after rising as much as 4.4% during the session. The broader Topix advanced 1.35% to 3,881.96. Despite the rally, the Nikkei ended the week down 0.85%, snapping a three-week winning streak.
Chip-related stocks led the gains, with Advantest soaring 8.54% and Tokyo Electron rising 7.26%, providing the biggest boost to the benchmark index.
Banking shares also advanced ahead of next week’s Bank of Japan policy meeting, where the central bank is widely expected to raise interest rates to 1%, the highest level in 31 years. Mitsubishi UFJ Financial Group gained 0.67%, while Mizuho Financial Group added 2.29%.
The upbeat mood was tempered by losses in several heavyweight stocks. Recruit Holdings fell 3.27%, Murata Manufacturing dropped 4.58%, and Sony Group declined 2.29%.
Investor sentiment was buoyed by hopes that a potential US-Iran agreement could reopen the Strait of Hormuz to shipping, although uncertainty remained after Iran said no final decision had been made on a deal.
