Japanese equities closed higher on Wednesday, with risk appetite improving after the U.S. and Iran agreed to a two-week ceasefire, easing geopolitical concerns and supporting broader market sentiment.
The Nikkei 225 rose 5.39%, or 2,878.86 points, to close at 56,308.42.
The US and Iran agreed to a two-week ceasefire in exchange for Tehran reopening the Strait of Hormuz, averting a threatened escalation by President Donald Trump.
Trump said the pause in attacks would hold as long as Iran ensures the "complete, immediate and safe" reopening of the key shipping route, buying time for talks toward a broader deal to end the six-week conflict.
In economic news, Japan posted a current account surplus of 3.933 trillion yen in February, slightly lower year over year but above expectations and sharply higher than January. Exports rose to 9.372 trillion yen while imports increased to 9.105 trillion yen, both up from a year earlier.
On the corporate front, Mitsubishi Motors (TYO:7211) rose 6% after its CEO said Middle East-related supply disruptions have not forced production halts, with sourcing challenges manageable and diversification efforts underway.
Healios (TYO:4593) jumped 11% after securing a 144 million yen initial order from South Korea's JENECELL for stem cell-derived cosmetic raw materials, with shipments set to begin in July.
Toyota Boshoku (TYO:3116) gained 4% despite flagging 16 billion yen in quality-related costs tied to seat defect recalls in the US and China, to be booked in the fourth quarter.
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