FX.co ★ Japanese Stocks Rebound as Trump Announces Ceasefire

The Nikkei 225 Index surged by 1.3% to exceed 38,800, while the broader Topix Index rose by 1.2% to reach 2,794 on Tuesday, breaking a three-day losing streak. This uptick followed US President Donald Trump's announcement of a ceasefire agreement between Iran and Israel, dubbed “The 12-Day War.” Despite Tehran's retaliatory strike on a US military base in Qatar, which resulted in no casualties, investors seemed to dismiss the impact. Importantly, Iran refrained from targeting the strategic Strait of Hormuz, alleviating fears of significant disruptions to global oil supplies. Domestically, market participants are evaluating the Bank of Japan's monetary policy trajectory as the central bank indicated a willingness to consider further interest rate hikes. Technology stocks propelled the market forward, with notable performances from Lasertec at 9.1%, Disco at 3%, Tokyo Electron at 4.8%, and SoftBank Group at 2.8%.