Tokyo’s Nikkei stock average reached a new intraday high on Friday, buoyed by positive market sentiment. The rise follows gains in major US stock indices on Thursday, spurred by a memorandum of understanding signed between the United States and Iran aimed at de-escalating conflict. Investors are reacting favorably to expectations of normalized shipping through the Strait of Hormuz, a critical global oil transit route. Buying orders dominated the Tokyo market as a result of the improved geopolitical outlook. The market’s performance indicates a reduced risk perception regarding Middle East instability. Analysts suggest the gains reflect a broader trend of risk-on behavior among investors.