Nikkei jumps as ceasefire boosts sentiment and tech stocks rally

Japan?s Nikkei 225 rose 1.84% on Friday, capping a strong weekly gain of 7.15%, as improved global sentiment followed a temporary US-Iran ceasefire.

Investor confidence was supported by expectations of upcoming diplomatic talks in Islamabad, where US Vice President JD Vance is set to meet Iranian officials. However, caution remains due to ongoing tensions in the Middle East, including Israeli strikes in Lebanon and disruptions in the Strait of Hormuz.

Technology stocks led the rally, tracking global gains in the sector after CoreWeave secured a major $21 billion deal with Meta Platforms to provide computing capacity.

In Japan, companies such as Kioxia Holdings, Fujikura, and Lasertec posted strong gains. Fast Retailing also surged after raising its profit outlook, driven by strong demand from the US and Europe.

Overall, the market was lifted by optimism around easing geopolitical risks and continued strength in global technology stocks.