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Tokyo stocks jump \2,878 on risk-on mood following U.S.-Iran ceasefire agreement
Tokyo stocks surged on the 8th, with blue-chip stocks leading a broad risk-on rally. The Nikkei Stock Average rose nearly \3,000 at one point during the session before settling near session highs, albeit slightly off its peak.
The Nikkei Stock Average closed at \56,308.42, up \2,878.86 from the previous trading day, marking its fourth consecutive day of gains. Trading volume on the Prime Market totaled approximately 2.76 billion shares, with turnover reaching approximately \9.67 trillion. Of the stocks traded, 1,383 advanced, 168 declined, and 26 remained unchanged.
Risk appetite surged in the Tokyo market, driving the Nikkei to a historic gain that ranks as the third-largest single-day increase on record. Iran and the United States reached an immediate ceasefire agreement this morning, just ahead of the negotiation deadline. This triggered short-covering by bearish traders and futures-led buying that propelled the Nikkei sharply higher. The flow of funds reversed dramatically with crude oil prices plunging and domestic long-term interest rates falling sharply. Blue-chip stocks with large market capitalizations saw explosive gains amid index-linked buying. Asian stock markets rallied across the board, while U.S. stock index futures also surged, accelerating capital inflows into Japanese equities. Semiconductor-related stocks and electric wire manufacturers rose in unison, pushing the Nikkei's gain to \2,995 at one point late in the afternoon session. Eighty-eight percent of Prime Market-listed stocks advanced, with trading value reaching the \9.6 trillion range.
Among individual stocks, Kioxia Holdings <285A> topped gainers by percentage while also recording overwhelming trading volume. Furukawa Electric Co., Ltd. <5801> ranked second in both trading value and percentage gains, with these two stocks delivering standout performances. Semiconductor manufacturing equipment-related stocks soared across the board, including ADVANTEST CORPORATION <6857>, Lasertec corporation <6920>, DISCO CORPORATION <6146>, and Tokyo Electron Limited <8035>. JX Advanced Metals Corporation <5016> and Mitsui Kinzoku Company, Limited <5706> were bought up, while IBIDEN CO.,LTD. <4062> and Renesas Electronics Corporation <6723> also surged. Investment capital also concentrated on NITTO BOSEKI CO.,LTD. <3110>. FAST RETAILING CO., LTD. <9983> saw substantial buying, while Marumae Co.,Ltd. <6264> and TOHO TITANIUM COMPANY LIMITED <5727> also posted significant gains.
On the downside, Shin-Etsu Chemical Co., Ltd. <4063> and Nintendo Co., Ltd. <7974> were weak, while INPEX CORPORATION <1605> plunged. Shipping stocks fell in unison, including Mitsui O.S.K.Lines,Ltd. <9104>, Nippon Yusen Kabushiki Kaisha <9101>, and Kawasaki Kisen Kaisha, Ltd. <9107>, with MODEC,INC. <6269> also posting sharp losses. Other notable decliners included NIPPON COKE & ENGINEERING CO., LTD. <3315> and SAKATA SEED CORPORATION <1377>. Idemitsu Kosan Co.,Ltd. <5019> and Japan Petroleum Exploration Co., Ltd. <1662> also fell.
Source: MINKABU PRESS
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