FX.co ★ Japanese Shares Gain on US-Iran Deal Hopes

The Nikkei 225 Index jumped more than 2% to climb above 57,700 on Tuesday, reaching a six-week high amid growing optimism about a possible longer-term agreement between the US and Iran, despite the collapse of peace talks over the weekend. President Donald Trump said Tehran had contacted Washington just hours after the US imposed a naval blockade on Iranian oil shipments in the Strait of Hormuz. Crude prices fell, easing inflationary pressures and dampening expectations that central banks will keep policy tight or move toward further rate hikes. At the same time, uncertainty remains over whether the Bank of Japan will raise interest rates later this month, as policymakers weigh inflation risks against concerns about economic growth. The rally was led by technology stocks, with notable gains in Disco Corp (5.3%), Advantest (6.8%), Tokyo Electron (1.9%), Lasertec (2.3%), and SoftBank Group (5.5%).