Japan's Nikkei ends 6% higher on market recovery hopes
What’s happening: Japanese stocks recovered sharply this morning, sending the Nikkei 225 higher by around 6%.
What happened: The Nikkei 225 had declined to a one-and-a-half low during Monday’s session, as investors remained concerned about US President Donald Trump’s tariff threats.Markets in Japan received support this morning from the upbeat performance of US tech stocks.
Japan’s Nikkei index surges 6% as tech, banks lead gains
Why it matters: Last week, US President Trump had announced 34% tariffs on China and 24% on Japan. In response, China announced plans to impose a reciprocal 34% tariff on all imports from the US starting Thursday.
Trump retaliated to the move by threatening a new 50% tariff on Chinese goods unless Beijing withdraws its retaliatory tariffs. China’s Commerce Ministry said it opposes fresh tariff threats from the US President and said the country would take further measures to safeguard its interests.Trump expressed his willingness to meet with Japanese officials to begin trade talks after a phone call with Prime Minister Shigeru Ishiba.
Japan's Nikkei jumps 6%, rebounds from rout on market recovery hopes
Markets also received support from upbeat data from Japan, as the country’s current account surplus reached a record high. Japan’s current account surplus widened to ¥4,060.7 billion in February, from ¥2,737.1 in the year-ago month. The latest reading topped market expectations of ¥3,800 billion.
Shares of chipmaker Tokyo Electron surged more than 8% while Advantest’s stock climbed around 11% this morning. Banking stocks also recorded gains, with Mitsubishi UFJ Financial Group and Mizuho Financial Group adding 12% and 13%, respectively.
All industry sub-indices moved higher, with the banking index recording the biggest gains, jumping around 11%.
Japan’s Nikkei 225 index climbed more than 5.7% to 32,921.10 this morning, while the broader Topix added 6.2% to reach 2,431.07 this morning.
Other Asian stock markets also opened on a strong note, after recording losses in the previous session. Hong Kong’s Hang Seng Index rose 1.7% after dipping more than 13% to record its biggest single day nosedive since 1997 on Monday
.Japan’s Nikkei Soars 6% on Market Recovery Hopes
What to watch: Investors will continue monitoring tariff-related announcements from the US President.
Data on bank lending (0350 UAE Time), consumer confidence (0900 UAE Time) and machine tool orders (1000 UAE Time) will be released on Wednesday. Analysts expect Japan’s total value of loans to rise 3.1% year-over-year in March. Markets expect Japan’s consumer confidence index to decline to 34.7 in March, from 35.0 in February. Japan’s machine tool orders, which surged by 3.5% year-over-year to ¥118,125 million in February, are expected to increase by 0.5% in March.