TOKYO: Japan's Nikkei share average rose nearly 4% on Wednesday, supported by hopes of a de-escalation in the Middle East conflict after U.S. President Donald Trump said the war with Iran could end in two to three weeks.
The Nikkei climbed 3.87% to 53,039.72 by 0134 GMT, starting April on a strong note after the benchmark logged its worst month since the 2008 global financial crisis in March. The broader Topix was up 3.67% at 3,626.33.
"There are still uncertainties over the fate of the war, but at least the market is confident that it is moving towards the end," said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.
"If oil prices stabilise, it would make it easier for local firms to make forecasts for this fiscal year. They are set to start disclosing their outlook from the end of this month."
Trump said the United States could end its military attacks on Iran within two to three weeks and that Tehran did not have to make a deal as a prerequisite for the conflict to wind down.
In Japan, chip and artificial intelligence-related shares led the gains, with Advantest and SoftBank Group jumping 7.9% and 4.7%, respectively. Tokyo Electron rose 4.14%.
Memory chip maker Kioxia surged 9.7% to become the top percentage gainer on the Nikkei after its addition to the index following a regular reshuffle.
Of the 225 components of the Nikkei, 217 stocks rose.
Bank shares led the Topix higher. Mitsubishi UFJ Financial Group Sumitomo Mitsui Financial Group jumped 6% and 7%, respectively.
All but one of the Tokyo Stock Exchange's 33 industry sub-indexes rose. The shipping sector slipped 0.94%.
Mitsui OSK Lines fell 3.9%, becoming the biggest percentage loser on the Nikkei.
KDDI fell 3% after the phone company said it established an investigation committee for inappropriate transactions by employees at subsidiary BIGLOBE. - Reuters
