Daijiworld Media Network – Japan

Japan, May 7: Nikkei 225 surged more than 5 per cent on Thursday to cross the historic 62,000 mark for the first time, leading a broad rally across Asia-Pacific markets despite renewed geopolitical tensions in the Middle East.

Investor sentiment remained upbeat even after US President Donald Trump warned that Iran could face attacks “at a much higher level” if it failed to agree to a peace deal with the United States.

Japanese markets witnessed strong buying in technology, financial and materials stocks. Shares of SoftBank Group jumped more than 13 per cent, emerging among the top gainers.

Electronics manufacturer Ibiden Co Ltd rose 17 per cent, while metals and manufacturing firm Mitsui Kinzoku gained 16 per cent. Renesas Electronics advanced 13 per cent, and chemical company Tosoh Corporation climbed 12 per cent.

The broader TOPIX index also ended higher by 2.37 per cent.

Elsewhere in the region, Australia’s S&P/ASX 200 gained 0.9 per cent, while Hong Kong’s Hang Seng Index rose 1.47 per cent. Mainland China’s CSI 300 edged up 0.38 per cent.
However, South Korean markets reversed early gains, with the KOSPI declining 0.68 per cent and the KOSDAQ slipping 0.56 per cent.

Markets also reacted to reports suggesting Washington and Tehran may be nearing an agreement to end the ongoing conflict. In a post on Truth Social, Donald Trump stated that the US military campaign, termed “Operation Epic Fury”, could end if Iran agreed to the proposed terms.

He further indicated that a peace deal could lead to the reopening of the Strait of Hormuz to all nations, including Iran.

Meanwhile, Wall Street closed higher overnight, with the S&P 500 gaining 1.46 per cent and the Nasdaq Composite rising 2.02 per cent to record highs. The Dow Jones Industrial Average also advanced by more than 600 points.