Nikkei 225 hits record high on hopes for Iran crisis resolution
Tokyo's main index, the Nikkei 225, closed up 1.8% to break its all-time high after signals of progress in negotiations between the United States and Iran. Exporters and the insurance sector led the index's advance.
The Nikkei 225 closed at 41,560 yen, breaking through its late-March record. The yen weakened 0.4% against the dollar, but exporter earnings expectations supported by the bond yield differential lifted the index. Toyota, Honda and Sony shares gained 2-3%.
The insurance sector index posted the strongest performance with a 2.6% advance. Tokio Marine and MS&AD gained on expectations that insurance premiums tied to marine shipping risks from the Iran conflict could ease. Banking and real estate indices traded with more limited gains around 1%.
MUFG analysts emphasized that with the increased likelihood of a resolution, the BoJ keeps its options open for a September policy adjustment. Brent crude settled at $92 after a $3 daily decline. The Tokyo session was followed by a generally positive picture across Asian bourses. Investment decisions should be made with professional financial advice.
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