Japan's Nikkei 225 index saw an increase following Trump's decision to extend the ceasefire
What’s happening:
Japan's Nikkei 225 index saw an uptick this morning, as investors kept a close eye on evolving tensions between the United States and Iran.
What happened:
In a recent development, US President Donald Trump confirmed an indefinite extension of the ceasefire agreement with Iran. Despite this, efforts to organize a second round of peace talks between the two countries fell through, with the US continuing its blockade of the critical Strait of Hormuz.
Japan's Nikkei 225 index experiences an upward climb
Here’s an update on the current status of key global markets.
Stock Indices:
**Major Stock Indices Performance**
- DJIA (US30): 49,387.90 (+0.48%)
- S&P 500 (US500): 7,102.40 (+0.54%)
- Germany's DAX: 24,237.10 (-0.24%)
- U.K.'s FTSE 100: 10,496.96 (-0.01%)
- France's CAC 40: 8,208.80 (-0.33%)
- Euro Stoxx 50: 5,922.75 (-0.13%)
- Japan's Nikkei 225: 59,663.00 (+0.53%)
- Australia's S&P ASX 200: 8,843.60 (-1.18%)
- China's Shanghai Composite: 4,106.26 (+0.52%)
- Hong Kong's Hang Seng: 26,163.24 (-1.22%)
- South Korea's KOSPI: 6,417.93 (+0.46%)
**Currency Exchange Rates**
- EUR/USD: 1.1750 (+0.05%)
- GBP/USD: 1.3521 (+0.13%)
- USD/JPY: 159.22 (-0.08%)
- AUD/USD: 0.7161 (-0.01%)
- USD/CAD: 1.3654 (-0.10%)
- Dollar Index: 98.31 (-0.09%)
Japan's Nikkei 225
Why it matters:
US President Trump had previously warned of severe consequences if no agreement was reached with Iran before the ceasefire concluded. This created significant global anxiety over escalating tensions in the region.
However, market sentiment received a boost after Trump announced late Tuesday that the US would "indefinitely" extend the Iran ceasefire. This announcement comes just one day before the agreement was set to expire, easing concerns of an immediate escalation.
Despite this temporary relief, any progress toward renewed peace talks remains stalled. Both the US and Iran have accused one another of violating the terms of the ceasefire by targeting commercial vessels in the area. Furthermore, US Vice President JD Vance canceled his planned trip to Pakistan for a second round of negotiations, as Iran signaled it would not engage in dialogue until sanctions on the Strait of Hormuz were lifted. The blockade has severely restricted maritime trade in the region, pressuring Iran to halt oil production as surplus stockpiles accumulate at its key export hub, Kharg Island, which handles approximately 90% of the nation’s oil exports.
In other news, Japan’s economy showed mixed signals. Data released this morning revealed that Japan’s trade surplus expanded to ¥667 billion in March, up from ¥529.8 billion in the same month last year. However, the figure fell short of market expectations of ¥1,106 billion.
Exports grew 11.7% year-over-year to a record ¥11,003.3 billion, surpassing market predictions of 11% and accelerating from a 4.0% rise in February. This growth was driven by robust demand from the EU, ASEAN countries, and China. Imports also rose by 10.9%, reaching ¥10,336.3 billion and exceeding forecasts of 7.1% growth, up from February’s 10.3% increase.
In response, Japan’s Nikkei 225 index climbed 0.35%, reaching 59,557.71 this morning. Among individual stocks, SoftBank Group and Advantest experienced gains, while Mitsubishi Heavy Industries and IHI Corporation faced declines, ranking among the session's biggest losers.
Japan Nikkei gains
Key Focus: Investors will monitor ongoing developments surrounding the US-Iran conflict
Upcoming data releases on Thursday include the S&P Global Manufacturing PMI, S&P Global Services PMI, and S&P Global Composite PMI, all scheduled for 04:30 UAE time. In Japan, the revised S&P Global Manufacturing PMI for March stood at 51.6 (up from an initial 51.4) and is projected to rise further to 51.8 in April.
However, analysts anticipate Japan’s S&P Global Services PMI to dip from 53.4 in March to 52 in April, with the S&P Global Composite PMI likely declining from 53.0 to 51.4 during the same period.