Japanese Shares Close Higher on Hopes of Iran War Resolution
Japanese shares extended their gains on Thursday to close higher, tracking global optimism fueled by the hopes that the Middle East crisis may be resolved soon.The Nikkei 225 closed up 1,879.73 points or 3.1% to close at 61,684.14.Globally, investors were enthused when President Donald Trump announced that the U.S. and Iran are in the "final stages" of negotiating a peace deal to end the conflict.Iran, in response, said it had received the American points of view and was currently examining them. Iranian President Masoud Pezeshkian said on X that his country has "explored every avenue to avert war," adding that "all paths remain open from our side".On the domestic front, Japan reported an unadjusted trade surplus of 301.91 billion yen for April as the value of exports climbed 14.8% year-on-year, while the import value increased by 9.7%, as energy imports plunged in the month.Meanwhile, the country's core machinery orders received by the private sector fell seasonally adjusted 9.4% in March from the previous month.On the corporate side, shares of Orix (TYO:8591) closed up over 3% in Thursday's trade, after the company said it expects a 70 billion yen increase in attributable net income for the fiscal first quarter ended June 30, after incorporating investment gains and losses tied to Toshiba.Also, SOMPO Holdings' (TYO:8630) shares plunged nearly 11%, even as net income attributable to owners of the parent soared 163% to 640.1 billion yen in the fiscal year 2025 from 243.1 billion yen a year earlier.