TOKYO: Japan’s Nikkei share average gained for a second-straight session on Monday as easing trade tensions between the United States and Europe supported risk appetite.
Nippon Steel jumped as much as 7.4% after United States President Donald Trump appeared to give his blessing to the company’s protracted takeover of US Steel.
Demand for equities rose broadly after Trump extended a tariff deadline on Europe, another backtrack from his sweeping “Liberation Day” import duties announced last month.
Japan’s Nikkei bounces as US tariff fears ease, yen softens
The Nikkei 225 Index climbed 0.5% as of the midday break, while broader Topix was up 0.25%. Japanese bonds also rallied after a dramatic week that saw super-long yields rise to records.
“The market is now becoming more and more doubtful about (the) seriousness of the tariff policy, particularly after (Trump) dropped the tariff rates on China,” said Nomura chief macro strategist Naka Matsuzawa.
“The bond market started to stabilise after steepening quite a lot on the long end, rallying for two consecutive days, so I think that gave relief to the stock market as well,” he added.
The Japanese yen remained near a one-month high against the US dollar, curbing demand for export-related shares like Mazda Motor, which lost 0.8%. Nippon Steel pared its gains to just 1.6% at the break.
The largest percentage gainers in the Nikkei were CyberAgent up 4.4%, followed by Keisei Electric Railway gaining 3.7%.
The biggest losers in the index were Konica Minolta down 3.1%, followed by department store operators J.Front Retailing and Isetan Mitsukoshi Holdings, both down 2.9%.