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Japan's Nikkei gains despite US tariff threats; banks rally on upbeat GDP
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Japan's Nikkei gains despite US tariff threats; banks rally on upbeat GDP
Feb 16, 2025 11:39 PM

(Updates to market close)

By Brigid Riley

TOKYO, Feb 17 (Reuters) - Japan's Nikkei share average

gained in choppy trade on Monday, boosted by financials as the

economy grew more than expected, while automakers dragged on

threats of U.S. tariffs aimed at imported cars.

The Nikkei added 0.1% to close at 39,174.25 after

seesawing between gains and losses for much of the session. The

broader Topix climbed 0.3% to 2,766.9.

Rate-sensitive banks gained 0.9% and shorter-term

Japanese government bond yields marched higher after data showed

Japan's economy expanded an annualised 2.8% in the

October-December quarter.

The latest Gross Domestic Product (GDP) figures appeared to

support the Bank of Japan's plan to keep hiking interest rates

and normalise monetary policy.

Megabanks Sumitomo Mitsui Financial Group and

Mitsubishi UFJ Financial Group ( MUFG ) both added about 2%.

Investors sized up the latest tariff salvo after U.S.

President Donald Trump said on Friday that tariffs on

automobiles would be coming as soon as April 2, without any

further details.

"There are a lot of uncertainties..., leaving just a vague

impression that tariffs will be increased," said Kazuo Kamitani,

an equities strategist at Nomura Securities.

Toyota Motor ( TM ), down 1.1%, was among major automakers

to decline. The auto sector shed 1.3% to become one

of the worst performers among the Tokyo Stock Exchange's 33

industry sectors.

Wall Street offered Japanese shares little direction, with

U.S. stocks ending mixed on Friday. AI darling Nvidia ( NVDA )

climbed to lift the Nasdaq, while the Dow and S&P 500

declined.

U.S. markets will be closed on Monday for the Presidents'

Day holiday.

Among Japan's heavyweight shares, chip-testing equipment

maker Advantest ( ADTTF ), which counts Nvidia ( NVDA ) among its

customers, gained 1.3%, while AI-focused startup investor

SoftBank added 1.8% to boost the Nikkei the most.

Peer Tokyo Electron ( TOELF ) stumbled 1.1%, while Sony Group ( SONY )

rallied 4.1%.

Bridgestone ( BRDCF ) surged to end nearly 6% higher as the

tiremaker announced plans to buy back up to 11% of its shares.

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