Tokyo’s key Nikkei index jumped more than 3% at the open on Tuesday after plunging an eye-watering 7.8% the previous day, as U.S. tariffs fuel market volatility.
The benchmark Nikkei 225 index was up 3.41%, or 1,061.92 points, at 32,198.50, while the broader Topix index gained 3.33%, or 76.14 points, to 2,364.80. Seoul’s Kospi index was also up nearly 2% in early trade.
Nippon Steel shares soared 11% after U.S. President Donald Trump launched a review of the company’s proposed takeover of U.S. Steel. The merger had previously been blocked by Trump’s predecessor, Joe Biden, on national security grounds. On Monday, shares of U.S. Steel had closed up 16% in New York.
The moves come after news emerged that Japan is sending a team to the U.S. to negotiate on trade, Trump said, adding that he spoke earlier Monday with Prime Minister Shigeru Ishiba, who separately said he told Trump to rethink tariff policies.
Trump’s decision to impose a 25% levy on auto imports, and a reciprocal 24% tariff on other Japanese goods, is expected to deal a huge blow to japan’s export-heavy economy. Analysts predict the higher duties could knock up to 0.8% off economic growth.
AloJapan.com