Japanese Shares End Week With Gains on Hopes of US-Iran Ceasefire Extension
Japanese shares ended the week on a high, closing with gains on Friday, driven by optimism in global markets over a tentative 60-day ceasefire extension and renewed nuclear talks between the US and Iran.The Nikkei 225 closed up 1,636.38 points or 2.5% at 66,329.50.The drop in oil prices, with Brent crude falling towards $93 per barrel, also helped to lift investor sentiment.News platform Axios reported that the U.S. and Iran agreed on a 60-day memorandum of understanding to extend the ceasefire and launch negotiations on Iran's nuclear program. However, US President Donald Trump has yet to give final approval to the proposals.If approved, the deal will allow unrestricted shipping through the Strait of Hormuz, easing trade woes.Domestic investor mood was uplifted by the growth in Japan's retail sales by 2.1% year-on-year to 13.217 trillion yen in April, according to preliminary data from the Ministry of Economy, Trade, and Industry on Friday.The ministry also released data that showed Japan's industrial production index rose at a seasonally adjusted 0.8% in April from the month prior, and increased 2.3% from a year ago.Also, Japan's unemployment rate eased to 2.5% in April compared with the previous month's 2.7%, according to government data released on Friday.On the corporate side, Mitsui & Co (TYO:8031) plans to expand its liquefied natural gas investments across the Middle East, the U.S., and Australia, as the Japanese trading giant responds to surging electricity demand from data centers worldwide, Bloomberg News reported on Friday, citing CEO Kenichi Hori.Also, Nikon (TYO:7731) aims to revive its semiconductor photolithography business by offering lower prices than Dutch rival ASML, which controls over 80% of the market, Nikkei Asia reported on Friday, citing newly appointed president and CEO, Yasuhiro Ohmura.
