Nikkei closes up 497.77 points, yen weakens as Ukraine war hopes near end

Nikkei index, Tokyo stock marketThe index closed up for three straight trading days today (February 3), boosted by export-oriented stocks after the yen weakened against the US dollar, while market sentiment improved on hopes that the war in Ukraine may be nearing an end.

Kyodo News Agency reported that the Nikkei index closed at 39,461.47 points, an increase of 497.77 points or +1.28%.

The stocks that led the market in gains were the textile and garment group, the pharmaceutical group, and the securities company group.

Analysts reported that the stock market continued to rise throughout the day, with the Nikkei index jumping more than 600 points at times, benefiting from the impressive performance of some domestic companies, along with technology stocks that adjusted in line with the positive direction of the US stock market last night.

Export stocks, especially automotive manufacturers, benefit from the weaker yen, which will increase the value of profits from overseas operations when converted back to yen.

Investors also welcomed the latest developments in the Ukraine war after US President Donald Trump said on Wednesday (Feb 12) that he and Russian President Vladimir Putin had agreed during a phone conversation to start talks to end the conflict.

“The hope of an end to the war in Ukraine has boosted market sentiment because it will allow ships and planes to avoid detours, which will benefit businesses,” said Shingo Ide, chief equity strategist at NLI Research.

China's Shanghai Composite Index closed lower on Tuesday (Feb 13), with the market pressured by concerns about the trade war and profit-taking by investors.

The Shanghai Composite Index closed at 3,332.48, down 13.90 points or -0.42%.

Chinese stocks were hit by concerns over US President Donald Trump's tariffs after he announced on Wednesday (Feb 12) that he would impose reciprocal tariffs on all countries that levy tariffs on US imports, raising concerns that the global trade conflict could escalate.

In addition, the Chinese stock market was pressured by profit-taking after a strong rally in the recent period, boosted by positive sentiment towards artificial intelligence (AI) technology.

Hong Kong's Hang Seng Index closed lower today (February 13), following the direction of Chinese stock markets, pressured by concerns about the trade war.

The Hang Seng Index closed at 21,814.37 points, down 43.55 points or -0.20%.

US President Donald Trump announced on Wednesday (February 12) that he would impose reciprocal tariffs on any country that imposes tariffs on US imports, raising concerns that the global trade conflict could escalate.

South Korea's benchmark stock index closed at a three-month high on Thursday (Feb 3), led by technology and auto stocks on hopes that US President Donald Trump will waive import tariffs.

Meanwhile, the Korea Composite Stock Price Index (KOSPI) closed at 2,583.17 points, up 34.78 points, or +1.36 percent, on heavy trading volume of 669.19 million shares worth 16.82 trillion won (1.161 billion U.S. dollars), with gainers outnumbering decliners 571 to 309.

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