Tokyo Stocks Close Tuesday with Gains

(MENAFN) Tokyo's equity markets rallied sharply on Tuesday after U.S. President Donald Trump signaled diplomatic movement with Iran, sending oil prices tumbling and sparking a broad-based surge in Japanese stocks — though momentum faded as Tehran flatly rejected Washington's account of the talks.

The benchmark 225-issue Nikkei Stock Average closed 736.79 points higher, or 1.43 percent, settling at 52,252.28, while the wider Topix index climbed 73.23 points, or 2.10 percent, to finish at 3,559.67. Insurance, oil and coal products, and nonferrous metal sectors led advances on the Prime Market's top tier.

The rally was ignited after Trump took to social media to announce that Washington and Tehran had engaged in "very good and productive conversations," adding that he had ordered the Pentagon to postpone all military strikes against Iranian power plants and energy infrastructure for five days.

The statement sent West Texas Intermediate crude futures tumbling below $90 per barrel overnight, prompting the Nikkei to open explosively — briefly surging more than 1,100 points in early trading before buyers pulled back.

Gains were ultimately capped after Iran publicly denied that any such discussions had taken place, injecting fresh uncertainty into markets and rattling investor confidence, analysts said.

The conflicting narratives left traders caught between optimism over a potential de-escalation and the sobering possibility that the Middle East crisis remains far from resolved.

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