TOKYO, Aug 12, 2025 (BSS/AFP) - Japan's Nikkei 225 stock index surged more than 1,100 points to a record high Tuesday, as optimism returned to trading floors after Tokyo reached a deal to avert the worst of Washington's threatened tariffs.

The Nikkei jumped 2.8 percent, or 1,162.86 points, to 42,983.34 in the afternoon before easing back slightly.

The previous record was 42,426.77, set in July last year.

IwaiCosmo Securities said in a market commentary that "easing tensions over US-China trade talks, as well as speculation about the US's imminent lowering of (interest) rates" had helped boost investors' hopes about the recovery of Japanese companies.

That was leading to continued buying, it added.

A broad range of shares continued to surge shortly after the midday break.

Following gains in US tech shares, Japanese tech investor SoftBank group jumped 7.07 percent to 14,845 yen and Advantest, maker of semiconductor tests, rose 7.34 percent to 11,255 yen.

Automaker Toyota added 3.14 percent to 2,860 yen and Uniqlo-operator Fast Retailing added 4.67 percent to 48,440 yen.