By Reuters
TOKYO: Japan's Nikkei share average rose on Tuesday as investors' risk appetite was boosted after US President Donald Trump said Iran and Israel agreed to a ceasefire.
As of 0212 GMT, the Nikkei rose 1.1 per cent to 38,778.71, while the broader Topix rose 0.78 per cent to 2,782.78.
Trump said a "complete and total" ceasefire between Israel and Iran will go into force with a view to ending the 12-day conflict between the two nations, moments after both sides threatened new attacks.
"Following Trump's announcement, the market turned to risk on," said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.
Technology stocks led the gains on the Nikkei, with chip-making equipment maker Tokyo Electron climbing 4.4 per cent to boost the index the most.
Technology investor SoftBank Group advanced 4.7 per cent.
"But the yen's gain against the dollar capped the Nikkei's gains," Yasuda said.
The dollar fell following the news, pushing the yen up 0.3 per cent at 145.585. The yen fell to as low as 148 per dollar in its lowest in more than a month in the previous session.
A stronger Japanese currency tends to hurt shares of exporters, as it decreases the value of overseas profits in yen terms when firms repatriate them to Japan.
Honda Motor lost 0.39 per cent while Nissan Motor slipped 0.29 per cent.
Energy stocks fell as US crude futures tumbled, with Inpex falling 5.6 per cent to be the worst percentage loser on the Nikkei. Oil refiner Eneos Holdings slipped 1.98 per cent.
Shipping firms also fell, with Kawasaki Kisen and Mitsui OSK Lines losing 1.94 per cent and 1.58 per cent, respectively.
Of more than 1,600 stocks trading on the Tokyo Stock Exchange's prime market, 69 per cent rose and 26 per cent fell, with 4 per cent trading flat.
Source : japans-nikkei-rises-after-trump-announces-iran-israel-ceasefire