TOKYO, May 13 (Reuters) - Japan's Nikkei share average
jumped to the highest in almost three months on Tuesday as the
U.S. and China agreed to temporarily slash harsh reciprocal
tariffs, easing concerns that their trade war could trigger a
global recession.
The Nikkei surged as much as 2.3% to 38,494.06
shortly after the open, a level last seen on February 21, before
entering the midday recess up 1.7% at 38,296.86.
Of the index's 225 components, 152 rose, compared to 73 that
fell.
The broader Topix gained 1.2%.
Under the truce announced on Monday, the U.S. will cut extra
tariffs it imposed on Chinese imports last month to 30% from
145% for the next three months, while Chinese duties on U.S.
imports will fall to 10% from 125%.
But the pause did little to address the underlying schisms
that led to the dispute, including the U.S. trade deficit with
China.
"For now, some of the uncertainty surrounding the global
trade situation has been relieved," said Maki Sawada, a
strategist at Nomura.
"Tariffs were slashed more than expected," she said. "U.S.
stagflation concerns have come down a notch."
Shipping was the top performer among the Tokyo
Stock Exchange's 33 industry groupings, climbing 4.2%.
Banking was next with a 3.8% advance, as a jump
in bond yields improved the outlook for investment and lending
income.
Pharma rebounded 3.6% following Monday's steep
drop as U.S. President Donald Trump moved to reduce prescription
drug and pharmaceutical prices.
Automakers gained 2.7% following a sharp drop in
the yen against the dollar overnight, which boosts the
value of overseas revenues.
Toyota ( TM ) climbed 3.7%, and Nissan ( NSANF ) advanced
3.2%.
Nissan ( NSANF ) announces financial results after the bell, with
national broadcaster NHK reporting the troubled carmaker plans
more than 10,000 additional layoffs globally.
(Reporting by Kevin Buckland; Editing by Mrigank Dhaniwala)