Asia
Japanese Shares Hit Record Highs After US-Iran Sign Peace Deal
Japanese shares touched a record high on Thursday to close with strong gains after the United States and Iran formally signed a landmark ceasefire agreement on Wednesday.The Nikkei 225 finished the day up 1,151.24 points or 1.65% at 71,053.49.The US and Iran formally signed a ceasefire agreement as Pakistani Prime Minister Shehbaz Sharif confirmed on X that the accord had been electronically signed by the presidents of both nations.Pakistan, who served as mediator, said the deal carries immediate effect, with Iran pledging to reopen the Strait of Hormuz and Washington committing to lift its naval blockade as the first steps under the agreement. This will amount to easing geopolitical conflicts and the cooling of global oil prices.Investors also took into account that they also reacted to the U.S. Federal Reserve holding the interest rates steady. The newly installed Federal Reserve Chair, Kevin Warsh, reaffirmed the Fed's resolve to bring prices back under control, offering no clear signals on what direction policy would take next.Back home, Japan plans to slash its consumption tax to 1% from the current 8%, a first such tax policy shift since the levy was introduced in 1989, Reuters reported Wednesday, citing a proposal submitted to a government panel by a senior Liberal Democratic Party executive.On the corporate side, six Japanese confectionery and dairy companies--Morinaga Milk (TYO:2264), Morinaga & Co.(TYO:2201), Akagi Nyugyo, Lotte, Ezaki Glico (TYO:2206), and Meiji (TYO:2269)--are being investigated by the Japan Fair Trade Commission (JFTC) on suspicion of violating the Antimonopoly Act.All six companies confirmed the on-site inspections and pledged full cooperation with authorities, according to statements on their websites on Thursday.Also, Daiichi Sankyo (TYO:4568) entered into a 200 billion yen syndicated, unsecured money loan agreement with Japanese banks. The new borrowing is intended to secure long-term working capital, with repayment scheduled for June 2029 and June 2031, according to a Tokyo bourse filing on Wednesday.
Nikkei 225TYO:2201TYO:2206TYO:2264TYO:2269TYO:4568
