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Japan's Nikkei bounces as US tariff fears ease, yen softens
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Japan's Nikkei bounces as US tariff fears ease, yen softens
Mar 24, 2025 8:35 PM

(Updates for the midday break)

By Brigid Riley

TOKYO, March 25 (Reuters) - Japan's Nikkei share average

climbed more than 1% on Tuesday as indications that impending

U.S. tariffs against trading partners may be more measured and

targeted than previously feared injected fresh optimism into

markets.

Automakers and other export-related stocks received an

additional boost from a weaker yen.

The Nikkei was up 0.7% at 37,881.70, as of the

midday break, putting the index on track to snap a three-day

losing streak.

The broader Topix touched an eight-month peak of

2,818.36, and was trading 0.3% higher at 2,799.92.

Japanese equities took their cue from all three major U.S.

stock indexes finishing sharply higher on Monday after investors

took the latest comments from U.S. President Donald Trump as a

sign of flexibility on the tariff blitz that has rocked

markets.

The broad gains across U.S. stock indexes reassured

investors, and tariff concerns eased somewhat, according to

Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS

Asset Management.

However, it remains uncertain how long this optimism will

last.

"There are still many unknowns, like what specific tariffs

will be announced on April 2, and we won't know until next

week," said Ichikawa.

Japan's technology shares outperformed after their U.S.

peers rebounded overnight, with the Philadelphia SE

Semiconductor Index logging a 3% rise. SoftBank Group

climbed 1.2% and Tokyo Electron ( TOELF ) added 1.7%.

Toyota Motor ( TM ), up 0.8%, along with other carmakers,

gained on the expectation that U.S. tariffs on auto imports

might not be as severe as previously anticipated, while also

benefiting from a weaker yen.

The dollar last traded at 150.63 yen after the

Japanese currency depreciated overnight.

Among major shares, Uniqlo parent firm Fast Retailing ( FRCOF )

rose 1.1%, contributing the most to the Nikkei.

Electronic components maker TDK Corp ( TTDKF ) and medical

equipment maker Terumo ( TRUMF ) both rallied more than 2%.

Chip-testing equipment maker Advantest ( ADTTF ) slipped 0.8%.

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