TOKYO: Japan’s Nikkei share average rose on Tuesday after U.S. President Donald Trump said Iran and Israel agreed to a ceasefire, which boosted global investors’ risk appetite.

The Nikkei ended 1.14% higher at 38,790.56 after touching 38,990.11, its highest since mid-February. The broader Topix rose 0.73% to 2,781,35.

Trump late on Monday announced a complete ceasefire between Israel and Iran, potentially ending the 12-day war that saw millions flee Tehran and prompted fears of further escalation in the war-torn region.

“Following Trump’s announcement, the market turned to risk on,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.

Technology stocks led gains on the Nikkei, with start-up investor SoftBank Group jumping 5.58%. Chip-making equipment maker Tokyo Electron rose 3.65%.

“But the yen’s gains against the U.S. dollar capped the Nikkei’s gains,” Yasuda said.

The dollar fell after the news of the ceasefire, pushing the yen up 0.7% to 145.15. The yen fell to as low as 148 per dollar, its weakest in more than a month.

A stronger Japanese currency tends to hurt the shares of exporters as it decreases the value of overseas profits in yen terms when firms repatriate them to Japan.

Honda Motor lost 1.14%, while Nissan Motor slipped 2.55%.

Energy stocks fell as U.S. crude futures tumbled, with Inpex falling 6.79% to be the worst percentage loser on the Nikkei. Oil refiner Idemitsu Kosan and Eneos Holdings slipped 2.09% and 1.96%, respectively.

Shipping firms also fell, with Kawasaki Kisen and Mitsui OSK Lines losing 1.3% and 1.42%, respectively.

Of more than 1,600 stocks trading on the Tokyo Stock Exchange’s prime market, 64% rose and 31% fell, with 4% trading flat.

REUTERS