Nikkei surges as oil prices slide on signs of Mideast ceasefire

[TOKYO] Japan’s Nikkei share average surged more than 4 per cent on Wednesday as signs of a ceasefire in the Middle East crisis drove crude oil prices sharply lower and eased concerns of an economic slowdown.

The benchmark Nikkei 225 Index jumped 4.67 per cent to 55,923.27, while the broader Topix climbed 3 per cent to 3,763.51.

US President Donald Trump said on Tuesday he had agreed to a two-week ceasefire with Iran, less than two hours before a deadline he had set for Teheran to reopen the Strait of Hormuz.

Japan’s economy is particularly vulnerable to rises in crude oil prices because of its heavy reliance on imported energy. US crude futures fell about 16.5 per cent to US$94 a barrel.

There were 212 advancers on the Nikkei against 10 decliners. The largest percentage gainers were Furukawa Electric, up 12.4 per cent, followed by Advantest Corp, gaining 9.3 per cent and Resonac Holdings, which added 9.3 per cent.

The largest losers were Inpex, down 7.4 per cent, followed by Mitsui O.S.K. Lines, 4.1 per cent lower, and Kawasaki Kisen Kaisha, which sank 2.8 per cent. REUTERS