Japanese stocks are set to gain after President Donald Trump said the US and Iran have reached a peace deal, raising hopes the Middle East war is nearing an end and the Strait of Hormuz will reopen.
Nikkei 225 Stock Average futures expiring in September on the Chicago Mercantile Exchange traded at 68,390 as of 7:58 a.m. in Tokyo. That compares with 66,120 for contracts traded in Osaka Friday. Oil sank, while the dollar weakened against the yen.
Trump said in a social media post he’s authorizing the immediate removal of the Strait of Hormuz’s US naval blockade. Moments before, Pakistani Prime Minister Shehbaz Sharif said the agreement between US and Iran would be signed in Switzerland on June 19.
US and Iran Announce a Peace Deal to Reopen Strait of Hormuz
The view from Israel remains unclear, where Prime Minister Benjamin Netanyahu’s government jeopardized a signing at the last minute with new attacks on Lebanon.
“In addition to technology shares, buying is also likely to spread to manufacturers and other stocks that had been sold off, helped by lower oil prices,” said Shoji Hirakawa, chief global strategist at Tokai Tokyo Intelligence Lab. While the US-Iran peace deal will help boost the market, there is still uncertainty over the timeline for any arrangements regarding nuclear holdings, he said.
After climbing to a record high in early June, the Nikkei 225 has dipped after volatile sessions through last week amid shifting Middle East tensions and jitters over the AI-stocks rally.
SpaceX-related shares will likely rise, said Tokai Tokyo’s Hirakawa. SpaceX shares surged on their debut in the US Friday, with the company raising $75 billion in the largest listing of all time.
Elsewhere, investors will be focused on US and Japan’s central bank decisions this week. With Bank of Japan Governor Kazuo Ueda hospitalized, deputy Shinichi Uchida will host a post-meeting press conference Tuesday.
This article was generated from an automated news agency feed without modifications to text.
