Financial Wire

Japanese Stocks Rise on US-Iran Talks Optimism Despite Manufacturer Confidence Plunging to Three-Year Low

-- Japanese shares rose at the start of trading on Wednesday, mirroring overnight gains on Wall Street, as renewed optimism over further US-Iran dialogue helped ease crude prices and lift market mood.

The Nikkei 225 gained 387.8 points or 0.7% to open at 58,265.18.

With tensions in the Strait of Hormuz worsening the global energy crunch ahead of a ceasefire expiration next week, Washington and Tehran are preparing for another round of talks in the coming days.

On Tuesday, the IMF forecast that the Bank of Japan would raise interest rates gradually but at a somewhat steeper pace than previously anticipated six months ago.

The IMF's World Economic Outlook projects that Japan's growth will slow from 1.2% in 2025 to 0.7% in 2026 and further to 0.6% in 2027, a forecast largely unchanged from its October estimates.

The Reuters Tankan poll for April showed Japanese manufacturers' confidence plunging by 11 points to plus 7, the largest monthly drop since January 2023.

The reading also translated into the first decline in three months, driven by surging oil prices and supply chain disruptions from the Middle East conflict.

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