TOKYO- Japan’s Nikkei share average climbed on Tuesday, propelled by a sharp rally for automakers after US President Donald Trump hinted at granting the sector some kind of tariff reprieve.
The Nikkei gained 1 percent to 34,321.92, with the top eight performers all being carmakers or auto component manufacturers. The broader Topix added 1.3 percent.
Toyota Motor surged 5.2 percent in the morning session, buoying the Tokyo Stock Exchange’s auto and parts maker index by 4.6 percent – making it the standout performer among the bourse’s 33 industry groupings.
Sumitomo Electric Industries led individual gains with a 6.6 percent jump, followed closely by a 5.9 percent climb in Denso 6902.T, a key supplier within the Toyota Group.
Speaking on Monday at the White House, Trump said he was considering a modification to the 25 percent tariffs imposed on foreign auto and auto parts imports from Mexico, Canada and other places. Those tariffs could raise the costs of a car by thousands of dollars, and Trump said car companies “need a little bit of time because they’re going to make ‘em here.”
Despite the surge in auto-sector shares and concerns over potential trade policy reversals from Trump, the Nikkei’s second straight 1 percent gain is likely a welcome relief for investors. Last week, they were whipsawed by extreme market swings, with alternating days of sharp sell-offs and rebounds of up to 9 percent.
