Japanese Shares Rise as US Auto Tariff Cuts Take Effect
Japanese shares closed higher on Tuesday after US tariff cuts on Japanese cars and auto parts took effect the same day.
The Nikkei 225 rose 0.3%, or 134.15 points, to end at 44,902.27.
Trump this month signed an order cutting tariffs on Japanese auto imports to 15% from 27.5% under a July deal between the two countries. The lower rates, retroactive to Aug. 7, will be published in the Federal Register on Tuesday, with refunds issued for excess duties.
Over 490 aerospace components, including engine parts, batteries, onboard monitors, and radar and air conditioning equipment, have been exempted from the Trump administration tariffs. Items previously classified as steel and aluminum derived and still subject to tariffs will also be exempt under the new rates.
In economic data, Japan's tertiary industry activity index rose 0.5% in July to 105.0, seasonally adjusted, government data showed on Tuesday. The original index climbed 1.6% from a year earlier to 106.1.
Growth was driven by transport and postal services, finance and insurance, business-related services, and real estate, while retail trade, living and amusement services, and wholesale trade declined. Information and communications activity was unchanged.
On the corporate front, Seibu Prince Hotels Worldwide, a unit of Seibu Holdings, will acquire Ace Group International, operator of the Ace Hotel brand, for up to $90 million.
The deal through a new US subsidiary is expected to close by September-end. Ace runs hotels in North America, Europe, and Japan. Seibu Prince plans to expand its global portfolio to 250 hotels by 2035.
Toyota Motor launched its e-Palette battery electric vehicle on September 15 for multi-use mobility services. The vehicle supports shuttles, mobile stores, and entertainment use, with accessibility features, Level 2 automated driving, and plans for Level 4 systems by fiscal 2027.
MIXI said MIXI Australia acquired a 66.4% stake in PointsBet Holdings, securing about 230.9 million shares for AU$289 million ($187 million). The takeover bid ran from July 22 to Sept. 12.
Source : MT Newswires
