US set to impose 10 pc tariffs on another USD 200 billion of Chinese imports, Beijing vows "counter measures"
Headline indices of the Japan share market were higher on Monday, 10 September 2018, as investors chased for bottom fishing following the six-session losing streak and upbeat Japanese economic data. However, market gains were limited, amid negative cues from Wall Street Friday and concerns lingering over trade issues. Total 24 issues out of 33 TSE index inclined, with shares of Insurance, Mining, Banks, Marine Transportation, Information & Communication, and Machinery issues being notable gainers, while Fishery, Agriculture & Forestry, Retail Trade, and Land Transportation issues were notable losers. In late afternoon trade, the 225-issue Nikkei Stock Average rebounded 58.27 points, or 0.26%, to 22,365.33. The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, grew 6.73 points, or 0.4%, to finish at 1,691.04.
US President Donald Trump on Friday signalled his intention to impose tariffs on additional $267 billion, in addition to the proposed 25% duty to be levied on $200 billion of Chinese goods. The US has already imposed additional tariffs of 25% on $50 billion of Chinese goods on 23 August under Section 301 on grounds of alleged theft of American intellectual property rights and forced transfer of technology from US companies by China. With additional tariffs on the proposed $200 billion Chinese goods, the total IPR (intellectual property rights)-related tariffs on Chinese goods will go up to $250 billion.
The US administration is currently struggling to finalize the list of Chinese goods of $200 billion that would be subjected with additional tariffs because of opposition from American businesses. Many US companies making bicycles to laptops and mobile phones, including Apple Inc., are seeking exemptions from the proposed tariffs on $200 billion Chinese goods, while cautioning that the tariffs will adversely hit America's economic interests.
Adding to the tensions, data out Friday showed China's trade surplus with the United States widened to a record in August, an outcome that could further inflame Sino-U. S. trade tensions. Trump, who is challenging China, Mexico, Canada and the European Union on trade issues, has now expressed displeasure about his country's large trade deficit with Japan.He said on Friday trade discussions with Japan has begun and added that India has also asked to start talks on a trade deal.
Also weighing on global shares was the prospect of faster rate rises by the Federal Reserve after data on Friday showed U.
S. jobs growth accelerated in August and wages notched their largest annual increase in more than nine years.
Shares of export-related companies gained ground on bargain hunting. Panasonic, Mitsubishi Electric, Sony Corp, Canon Inc rose in a range of 0.1% to 1%. TDK Corp shed 2% and Advantest Corp dropped 2.5%.
ECONOMIC NEWS: The Ministry of Finance said on Monday that Japan had a current account surplus of 2,009.7 billion yen in July 2018, up from 1,175.6 billion yen in June. The trade balance showed a deficit of 1.0 billion yen, following the 820.5 billion yen surplus in the previous month. The adjusted current account surplus was 1,484.7 billion yen, down from 1,762.4 billion yen a month earlier.
Japan GDP jumps 3% in Q2 -- Japan's gross domestic product expanded 3% on year in the second quarter of 2018, up from the previous reading of 1.9%, according to data from the Cabinet Office released on Monday. On an annualized seasonally adjusted basis, GDP added 0.7%, unchanged from the previous reading.
CURRENCY NEWS: Japanese yen slightly was little changed against greenback as a flood of local economic data crossed the wires early into Monday's Asia Pacific trading session. The dollar was quoted at 110.92-93 yen compared with 110.95-111.05 yen in New York and 110.74-75 yen on Friday in Tokyo.
OFFSHORE MARKET NEWS, US stock market closed down on Friday. The Dow Jones Industrial Average fell 79.33 points or 0.3% to 25,916.54, the Nasdaq dipped 20.18 points or 0.3% to 7,902.54 and the S&P 500 slipped 6.37 points or 0.2% to 2,871.68.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)