Nikkei rises on Middle East de-escalation hopes ahead of Trump speech

[TOKYO] Japan’s Nikkei share average rose on Thursday, lifted by hopes of a de-escalation in the Middle East conflict, with investors awaiting remarks later in the day from U.S. President Donald Trump that could signal the war’s trajectory.

The Nikkei rose 0.85 per cent to 54,207.02 as of 0008 GMT, while the broader Topix climbed 1.18 per cent to 3,715.25.

Trump, who had signalled that an end to the Middle East conflict could be close, is scheduled to address the nation at 9 pm EDT on Wednesday (0100 GMT on Thursday) to provide what he described as an “important update on Iran” .

Speaking to Reuters, Trump said the US would end its war on Iran fairly soon and could return for “spot hits” if needed. In a Truth Social post earlier, Trump had said that Iran’s new leader had asked for a ceasefire.

“It looks like the war can avoid the worst scenario - the US ground invasion into Iran, but for the equities to trade higher, we need to wait and see if the passage of the Strait of Hormuz will become possible,” said Kazunori Tatebe, chief strategist at Daiwa Asset Management.

Meanwhile, Uniqlo-brand owner Fast Retailing rose 1.21 per cent to provide the biggest boost to the Nikkei. Technology investor SoftBank Group rose 1.04 per cent. REUTERS