TOKYO: Japan’s Nikkei share average climbed more than 1% on Tuesday as indications that impending US tariffs against trading partners may be more measured and targeted than previously feared injected fresh optimism into markets.
Automakers and other export-related stocks received an additional boost from a weaker yen.
The Nikkei was up 0.7% at 37,881.70, as of the midday break, putting the index on track to snap a three-day losing streak.
The broader Topix touched an eight-month peak of 2,818.36, and was trading 0.3% higher at 2,799.92.
Japanese equities took their cue from all three major US stock indexes finishing sharply higher on Monday after investors took the latest comments from US President Donald Trump as a sign of flexibility on the tariff blitz that has rocked markets.
The broad gains across US stock indexes reassured investors, and tariff concerns eased somewhat, according to Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
However, it remains uncertain how long this optimism will last.
“There are still many unknowns, like what specific tariffs will be announced on April 2, and we won’t know until next week,” said Ichikawa.
Japan’s technology shares outperformed after their US peers rebounded overnight, with the Philadelphia SE Semiconductor Index logging a 3% rise. SoftBank Group climbed 1.2% and Tokyo Electron added 1.7%.
Toyota Motor, up 0.8%, along with other carmakers, gained on the expectation that US tariffs on auto imports might not be as severe as previously anticipated, while also benefiting from a weaker yen.
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The dollar last traded at 150.63 yen after the Japanese currency depreciated overnight.
Among major shares, Uniqlo parent firm Fast Retailing rose 1.1%, contributing the most to the Nikkei.
Electronic components maker TDK Corp and medical equipment maker Terumo both rallied more than 2%.
Chip-testing equipment maker Advantest slipped 0.8%.
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