TOKYO: Tokyo’s Nikkei index jumped nearly 6 per cent in early trade on Tuesday (Apr 8) after plunging an eye-watering 7.8 per cent the previous day, as US tariffs fuel market volatility.
The benchmark Nikkei 225 index was up 5.81 per cent, or 1,809.92 points, to 32,946.50 yen, while the broader Topix index gained 6.20 per cent, or 141.82 points, to 2,430.48 yen.
Seoul’s Kospi index was also up nearly 2 per cent.
United States President Donald Trump upended the world economy last week with sweeping tariffs that have raised fears of an international recession and triggered criticism even from within his own Republican Party.
On Monday, stock markets and oil prices collapsed further, as trading floors across the world endured waves of selling after last week’s sharp losses.
Trump doubled down on his crusade on Monday, saying he was “not looking” at any pause in tariff implementation.
But meanwhile “Nvidia’s stabilisation and the 2.7 per cent rise in the Philadelphia Semiconductor Index (SOX) are expected to trigger buybacks in Japan’s high-priced, semiconductor-heavy stocks”, brokerage house Monex said in a note.
“With the yen’s continued weakness providing additional tailwinds, domestic markets are projected to open higher today,” it said.
One dollar bought 147.56 yen in morning trade, compared to 147.83 yen overnight.
“Both the US administration and President Trump himself are denying reports about the suspension of reciprocal tariffs, meaning concerns over tariffs still persist,” Monex said.
Japan’s Prime Minister Shigeru Ishiba, meanwhile, said late on Monday he had held a call with Donald Trump in which they agreed to more talks on the US president’s latest tariffs.
Despite the agreement, “tariff-related volatility will likely continue”, Monex added.
Also in Tokyo, Nippon Steel shares soared 11 per cent after Trump launched a review of the company’s proposed takeover of US Steel.
The merger had previously been blocked by Trump’s predecessor Joe Biden on national security grounds.
On Monday, shares of US Steel had closed up 16 per cent in New York.
