TOKYO: Japan’s Nikkei share average extends gains to a second consecutive session on Monday as easing trade tensions between the United States and the European Union supported risk appetite.
Nippon Steel jumped as much as 7.4% after US President Donald Trump appeared to give his blessing to the company’s protracted takeover of US Steel, and closed 2.1% higher.
Demand for equities also rose broadly after Trump on Sunday extended a tariff deadline on EU imports to July 9, just two days after he pushed for a 50% levy on the bloc.
The Nikkei 225 closed 1% higher, its sharpest one-day advance in almost two weeks. The broader Topix rose 0.6%.
Japanese government bonds also rallied, following a dramatic week in which super-long yields rose to all-time highs. “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.