Japanese markets rallied on Thursday, with both the Nikkei 225 and Topix indexes closing at fresh record highs after news that US President Donald Trump signed an interim agreement to end the conflict with Iran and reopen the Strait of Hormuz.
The Nikkei 225 Index rose 1.65% to close at 71,053, while the broader Topix Index gained 1.37% to finish at 4,068.
The agreement helped ease concerns about Japan's economy, which relies heavily on energy imports from the Middle East. Investors largely ignored the overnight decline on Wall Street, where markets reacted to signals from the US Federal Reserve that support for a rate hike this year is increasing.
Financial stocks led the gains, with Mitsubishi UFJ Financial Group rising 3.1%, Sumitomo Mitsui Financial Group advancing 4.3%, and Mizuho Financial Group adding 3%.
Technology stocks also performed strongly. Lasertec surged 7.1%, Tokyo Electron gained 4.7%, and SoftBank Group climbed 4.5%.
Overall, improved global sentiment and easing geopolitical concerns supported broad-based buying in Japanese equities.
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