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Tokyo stocks rebound after dips on US tariffs on China
TOKYO, Sept 18, 2018 (BSS/AFP) – Tokyo stocks opened lower but quickly
bounced back into the green on Tuesday, as investors braced for Beijing’s
reaction after the US announced tariffs on another $200 billion in Chinese
goods.
The benchmark Nikkei 225 index, which opened lower, was up 0.33 percent or
75.83 points at 23,170.50 after the first 30 minutes of trade.
The broader Topix index was up 0.47 percent 8.11 points at 1,736.72.
US President Donald Trump on Monday defied warnings and escalated the
trade confrontation with China, hitting the country with tariffs starting
next week on another $200 billion in imports and threatening to target even
more if Beijing retaliates.
The latest round of imports will face 10-percent tariffs through the end
of the year, and then the rate will jump to 25 percent.
“The news was not positive even though markets had already factored it in
somewhat,” said Makoto Sengoku, market analyst at Tokai Tokyo Research
Institute.
“But Washington made some concessions such as its exclusion of smart
watches from the sanctions list… Now that America has taken the first move,
we’ll watch how China will move next,” he told AFP.
Sengoku added he believed both sides would eventually seek a compromise.
Only last week, Beijing said it welcomed overtures from US officials
offering to re-start trade talks, but press reports indicate China would call
off any meetings if the new punitive duties take effect.
Trump warned that if China takes retaliatory action against “our farmers
or other industries”, Washington could raise tariffs on $267 billion of
additional imports.
That would mean imposing new taxes on all of the goods the US imports from
China.
The dollar eased to 111.77 yen from 111.83 yen in New York Monday
afternoon.
In individual stocks trade, Toyota rose 0.45 percent to 6,879 yen while IT
investor SoftBank Group fell 2.55 percent to 10,665 yen.
BSS/AFP/MR/ 1100 hrs