TOKYO: Tokyo stocks jumped Friday on news that US President Donald Trump has agreed to meet North Korean leader Kim Jong Un in a historic summit that may ease tensions over the Korean peninsula.
The announcement provided extra support to investors already cheering signs that Trump’s steel and aluminium tariffs may be softer than initially feared.
The benchmark Nikkei 225 index temporarily soared to a 2.4 percent gain after the Trump-Kim news before it fell back to finish up 0.47 percent, or 101.13 points, at 21,469.20. However, it fell 1.36 percent over the week.
The broader Topix index firmed 0.32 percent, or 5.53 points, to 1,715.48, for a weekly loss of 0.42 percent.
The Tokyo market also benefited from the appreciation of the dollar, which fetched 106.64 yen in Asian trade, up from 106.12 yen in New York late Thursday.
“The Nikkei index began the day with buy orders leading the way, after the major three US indices all ended higher,” Okasan Online Securities said in a commentary.
“The North Korea risk receded with the expected US-North Korea summit, and the yen’s fall (against the dollar) also served as tailwinds,” it said.
The market largely shrugged off the Bank of Japan’s decision to maintain its monetary easing programmes.
But some investors turned to selling, as they awaited for the release of US jobs data for February, SMBC Nikko Securities said.
“Gradually profit-taking returned and weighed on the market,” the brokerage said in a note.
Investors also began to ease their fears about Trump’s planned tariffs on steel and aluminium, as he and his associates softened their rhetoric.
Trump indicated he would be flexible toward “real friends”, and during the signing of the tariffs confirmed Canada and Mexico would be permanently exempted if the ongoing renegotiation of the North American Free Trade Agreement is successful.
The US leader also added Australia to a list of likely carve-outs, as a “great country” and “long-term partner”.
But he singled out Germany for criticism, reviving a longstanding gripe that European NATO allies do not pay their fair share.
Among major shares in Tokyo, Panasonic added 1.46 percent to 1,635 yen, while Sony edged up 0.30 percent to 5,393 yen.
Fast Retailing, operator of casual fashion chain Uniqlo, rose 0.55 percent to 42,400 yen.
But Toyota gave up earlier gains and ended down 0.35 percent to 6,791 yen.
Leading steel maker Nippon Steel & Sumitomo Metal Corp ended down 0.70 percent at 2,343 yen.
Kobe Steel lost 3.21 percent to 1,025 yen after it promoted a vice president to become the new chief executive following the resignation of its previous CEO over a data falsifying scandal.
Source: Brecorder.com
