Japanese Stocks Extend Gains Lifted by Calm US Markets
Japanese stocks are higher as US President Donald Trump’s temporary reprieve from auto tariffs and a drop in long-term bond yields helped lift sentiment.
The Topix Index rose 1.2% to 2,517.90 as of 9:07 a.m. Tokyo time
The Nikkei advanced 1.1% to 34,351.40
Transportation equipment, including automobiles, were the top gainers among the Tokyo Stock Exchange’s 33 industry sectors. Toyota Motor Corp. contributed the most to the Topix Index gain, rising 4.7%.
Export-related stocks such as those in the precision machinery sector and materials stocks such as manufacturers of rubber products and non-ferrous metals, were also notable gainers.
Banks, insurance companies, and securities companies also rose, buoyed by the rise in US financial stocks.
“Trump has begun to show some flexibility on tariffs, and Japanese stocks may have hit a bottom last week,” said Hideyuki Ishiguro, chief strategist at Nomura Asset Management Co.
“A temporary moratorium on auto tariffs would have a positive impact on Japan, where automobiles account for a large portion of exports to the US,” said Ishiguro while adding that if the impact on the economy and industry is significant, tariffs may be postponed for longer.
Out of 1,690 stocks in the Topix , 1,315 rose and 270 fell, while 105 were unchanged.
Source: Bloomberg
