Japan’s stock market surged on Wednesday, with the Nikkei 225 rising 2.87% and the Topix gaining 2.57%, marking a second day of strong gains. The rally was driven by growing optimism that tensions in the Middle East could ease, as reports suggested the US is in talks with Iran and pushing for a temporary ceasefire along with a broader resolution plan.
Falling oil prices also supported the market, which is positive for Japan as it relies heavily on energy imports. Technology and AI-related stocks led the gains, with strong performances from major chip and tech companies. Banks, automakers, and defense stocks also moved higher, contributing to the overall upbeat market tone.