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Japan Nikkei tumbles 1.2% on latest tariff news

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Headline indices of the share market dropped on Wednesday, 11 July 2018, amid sign of escalating trade tensions between the world's two biggest economies after the said it would impose tariffs on an extra 200 billion worth of Chinese imports. Among TSE33 issues, 31 issues inclined, while 4 declined, with shares of Pharmaceutical, Wholesale Trade, Pulp & Paper, Electric Power & Gas, & Steel, and Marine Transportation issues being notable gainers. At the close, the benchmark index dropped 1.2%, or 264.68 points, to 21,932.21. The broader index of all First Section issues on the Stock Exchange, meanwhile, fell 0.83%, or 14.25 points, to 1,701.88.

The government decided to impose the extra tariffs after efforts to negotiate a solution to the dispute failed to reach an agreement. 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

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.

The news sent stocks tumbling, and prompted a senior Chinese to warn that the was harming the global trade order.

Shares of fell 6.4% as consolidated operating profit in the nine months through May, announced on Tuesday, tumbled 20.1% from a year earlier to Y6.42 billion.

Shares of rose 6.6% after announced strong earnings Tuesday for the nine-month period to May. Its group operating and net profits jumped 38.4% and 32.7%, respectively, from a year before.

On the economic news front, 0.2% On Month In June -- prices added 0.2% on month in June, the of Japan said on Wednesday, down from 0.6% in May. On a yearly basis, prices advanced 2.8%, up from 2.7% in the previous month. Export prices were up 0.1% on month and 3.5% on year in June, the said, while import prices climbed 1.8% on month and 10.5% on year.

Japan Core Machine Orders Fall 3.7% In May -- Japan core machine orders dropped 3.7% on month in May coming in at 907.9 billion yen, the said on Wednesday, following the 10.1% spike in April. On a yearly basis, machine orders surged 16.5%, following the 9.6% jump in the previous month.

CURRENCY NEWS: The appreciated against U. S. dollar in on Wednesday. The dollar was down 0.1% at 110.88 yen, pulled back from a near two-month peak of 111.355.

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

First Published: Wed, July 11 2018. 16:13 IST