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Japan: Nikkei jumps 1.2% on bargain buying, weaker yen

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Headline indices of the share market posted a modest gain on Thursday, 12 July 2018, as investors chased for bottom fishing a day after a bruising selloff amid fears of an escalation in the U. S.-trade war after the said it would impose tariffs on an extra 200 billion worth of Chinese imports and said it would retaliate. The market rebound was partly supported by yen depreciation to 112.00 zone, a six-month low, against the dollar. Among issues, 25 issues inclined, while 8 declined, with shares of Fishery, Agriculture & Forestry, Information & Communication, Pharmaceutical, Electric Power & Gas, Foods, Insurance, Precision Instruments, and Transportation Equipment issues being notable gainers. However, losses in shares of Mining, Products, and Nonferrous Metals issues capped market gains. At the close, the benchmark index inclined 1.2%, or 255.75 points, to 22,187.96. The broader index of all First Section issues on the Stock Exchange, meanwhile, rose 0.46%, or 7.80 points, to 1,709.68.

Japanese stocks tumbled on Wednesday along with a slide in global equities after the raised the stakes in its trade war with on Tuesday, saying it would slap 10% tariffs on an extra $200 billion worth of Chinese imports. U.

S. officials released a list of thousands of Chinese imports the administration wants to hit with the new tariffs, including hundreds of as well as tobacco, chemicals, coal, and aluminum. It also includes consumer goods ranging from car tires, furniture, wood products, handbags and suitcases, to dog and cat food, baseball gloves, carpets, doors, bicycles, skis, golf bags, toilet paper and

said it will take firm and forceful measures if the new tariffs are enacted. That response probably would include measures other than tariffs. Trump has threatened to put new taxes on almost everything the imports from China.

Last week, imposed 25% tariffs on $34 billion of Chinese imports, drawing immediate retaliatory duties from on US imports in the first shots of a heated trade war. US had warned then that his country may ultimately impose tariffs on more than $500 billion worth of Chinese imports.

SoftBank Group, the most traded stock by turnover, jumped 6.4%, rising for 10 consecutive sessions after reports that US hedge fund has built a stake worth more than $1 billion in the company.

jumped 8% as investors continued to take heart from last week's announcement from the company and that the final analysis of a mid-stage trial of their Alzheimer's drug showed positive results for patients who received the highest dose.

Shares of fell 1.4% after the company's reported its operating profit fell 22% on the year to 12.68 billion yen for the first quarter ended May, hit by rising system costs.

CURRENCY NEWS: The depreciated against U. S. dollar in on Thursday, 12 July 2018, after the US Labor Department's expectation-beating inflation report increased prospects that the Federal Reserve will raise interest rates another two times this year. The dollar fetched 112.25 yen in Asian afternoon trade, against 112.03 yen in and 111.05 yen in on Wednesday.

In commodities, U. S. crude futures inched up 0.25% to $70.57 a barrel after tumbling 5% the previous day as trade tensions threatened to hurt and news that would reopen its ports raised expectations of growing supply. Brent crude rose 0.7% to $73.93 a barrel after tanking 6.9% overnight.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, July 12 2018. 14:08 IST