[TOKYO] Japan’s Nikkei share average snapped a three-day losing streak on Tuesday (Mar 25), as indications that impending US tariffs may be more measured than previously feared injected fresh optimism into the markets, though ongoing uncertainty capped the gains.
The Nikkei closed 0.5 per cent higher at 37,780.54. Earlier in the session, the index climbed more than 1 per cent and briefly reclaimed the crucial 38,000-point level.
The broader Topix touched an eight-month peak of 2,818.36, and finished 0.2 per cent higher at 2,797.52.
Japanese equities took their cues 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.
While the broad gains across US stock indexes reassured investors, it remained uncertain how long the optimism will last, according to Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
“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.
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Gains by heavyweight chip-related shares narrowed during afternoon trading, taking some of the momentum out of the Nikkei’s rebound. SoftBank Group edged 0.4 per cent higher and Tokyo Electron added 0.5 per cent.
Shares of Advantest, which counts AI darling Nvidia among its customers, extended losses to end 3.4 per cent lower.
Toyota Motor, up 0.7 per cent, was among Japanese carmakers to get a boost from hopes that US tariffs on auto imports might not be as severe as anticipated.
Exporter-related shares also received support from a weaker yen, with the dollar last trading at 150.55 yen after the Japanese currency depreciated overnight.
Among other major stocks, Uniqlo parent company Fast Retailing gained 0.6 per cent, providing the largest boost to the Nikkei.
Electronic components maker TDK Corp gained 1.8 per cent, and medical equipment maker Terumo climbed 2.5 per cent.
Game manufacturer Nexon rallied 9 per cent to top the rank of percentage gainers. REUTERS
