Japan Nikkei rebounds on bargain hunting

Headline shares of the Japan share market were higher on Friday, 06 July 2018, as investors chased for bargain hunting after benchmark indices closing at a three- month low on Thursday. Market topside was, however, capped as investors were concerns over the negative implications of the US set to impose tariffs on Chinese imports later in global day that many investors fear might trigger a full-scale trade war in a blow to the global economy. Among TSE33 issues, 29 issues inclined, while 4 declined, with shares of Pharmaceutical, Wholesale Trade, Pulp & Paper, Electric Power & Gas, Iron & Steel, and Marine Transportation issues being notable gainers. Around late afternoon, the benchmark Nikkei 225 index gained 0.75%, or 161.20 points, to 21,708.19. The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 0.83%, or 13.99 points, to 1,690.19.

The United States is due to impose the tariffs on Chinese exports on July 6. China's customs department informed markets on Thursday that China's retaliatory tariffs on US goods will take effect immediately after US tariffs on Chinese imports kick in. The Trump administration has levied a 25% tariff on $34 billion in Chinese goods, while the Chinese government has retaliated by announcing tariffs on the same value of U.S. goods.

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