This file photo shows the Tokyo Stock Exchange. (Mainichi)
TOKYO (Kyodo) — Tokyo stocks ended slightly higher Tuesday as concerns eased about U.S. President Donald Trump imposing a tariff much higher than initially announced on Japan and hopes grew for further negotiations through Aug. 1.
The 225-issue Nikkei Stock Average gained 101.13 points, or 0.26 percent, from Monday at 39,688.81. The broader Topix index finished 4.82 points, or 0.17 percent, higher at 2,816.54.
On the top-tier Prime Market, gainers were led by nonferrous metal, glass and ceramic product and precision instrument issues.
The U.S. dollar climbed to the lower 146 yen range in Tokyo as the latest tariff hike announcement was seen as reducing the likelihood of an early interest rate hike by the Bank of Japan, dealers said.
The Nikkei stock index initially tracked overnight Wall Street losses after Trump said Monday the 25 percent tariff on imports from Japan will be imposed from Aug. 1.
The index soon gained upward momentum and moved into positive territory, with the U.S. tariff level little changed from 24 percent announced in April, brokers said.
Under Trump’s so-called reciprocal tariffs, Japan was facing an additional levy of 14 percent on top of a baseline 10 percent duty, for a total rate of 24 percent.
“Since some investors were cautious after Trump had said earlier this month he may hike tariffs as high as 30 to 35 percent, his announcement of a 25 percent tariff relieved their worries,” said Maki Sawada, a strategist at the Investment Content Department of Nomura Securities Co.
The weaker yen benefited export-linked issues including auto shares.
AloJapan.com