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Tokyo’s Nikkei index jumps despite trade war concerns
TOKYO, Sept 18, 2018 (BSS/AFP) – Tokyo stocks jumped more than 1.4 percent
Tuesday to the highest level since early February, but investors braced for
Beijing’s reaction after the US announced tariffs on another $200 billion in
Chinese goods.
The benchmark Nikkei 225 index rose 1.41 percent or 325.87 points to close
at 23,420.54, while the broader Topix index was up 1.81 percent, or 31.27
points, to 1,759.88.
The Nikkei index opened lower but quickly bounced back into the green,
closing higher for the third straight session.
US President Donald Trump 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 tariffs had largely been expected and some key import items had been
left off the list of targets, but dealers continue to worry as the chances of
an all-out trade war grow.
“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.
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.
“We still can’t see an exit from the dispute,” said Hikaru Sato, senior
technical analyst at Daiwa Securities.
“We need to keep an eye on the next development,” Sato told AFP.
Dealers, meanwhile, said a weak yen helped boost exporters.
The dollar gained to 120.23 yen from 111.83 yen in New York Monday
afternoon.
In individual stocks trade, Toyota jumped 1.63 percent to 6,960 yen as
Sony gained 0.33 percent to 6,652 yen.
Start Today, owned by billionaire Yusaku Maezawa, plunged 2.43 percent to
3,200 yen after he was revealed as the first tourist who will fly on a SpaceX
rocket around the Moon.
IT investor SoftBank Group dropped 2.14 percent to 10,710 yen due to
profit-taking on its recent gain.
BSS/AFP/MR/ 1445 hrs