The Nikkei 225 Index surged 3.5% to climb above 52,800, while the broader Topix Index advanced 3.2% to 3,600 on Wednesday, breaking a four-session losing streak and mirroring the sharp rebound on Wall Street overnight. The rally was supported by renewed optimism over easing tensions in the Middle East, after President Trump suggested the conflict with Iran may not continue much longer and indicated that US forces could begin withdrawing within weeks.
Still, uncertainty persisted as Foreign Minister Abbas Araghchi rejected a ceasefire, instead demanding a complete end to the war, backed by guarantees and compensation.
On the domestic front, fresh data showed sentiment among Japan’s large manufacturers improved for a fourth consecutive quarter. The Tankan index rose to 17 in March from a revised 16, topping market expectations and reinforcing the Bank of Japan’s inclination to proceed with gradual interest rate hikes.
Among major index constituents, shares of Toyota Motor, Mitsubishi UFJ Financial, Sony, Sumitomo Mitsui Financial, and Tokyo Electron posted notable gains, rising between 3% and 5%.
