INSUBCONTINENT EXCLUSIVE:
TOKYO: Japan's Nikkei share average rose for the first time this week in a positive end to Friday, as investors took heart from gains in
Chinese stocks and covered their short positions after early wobbles when Washington's tariffs on Chinese imports took effect.
The Nikkei
ended 1.1 per cent higher to 21,788.14, snapping a four-day losing streak
The index dropped 2.3 per cent for the week, posting third weekly declines.
The Nikkei Volatility Index dropped 12 per cent to a 1-1/2-week
low of 18.16.
According to data released by the Japan Exchange Group, foreign investors sold a net 1.55 trillion yen of Japanese cash stocks
and futures during the last two weeks of June
Analysts said given the amount of net selling, it is likely that investors unwound their short positions on Friday as the negative US-China
trade news was priced in.
Stocks could experience volatility in the coming weeks, they said, as investors remain jittery about the potential
for a full-scale trade war between the world's two largest economies.
The US tariffs on more than 800 goods from China worth $34 billion
President Donald Trump has warned the United States may ultimately target over $500 billion worth of Chinese goods, an amount that roughly
matches its total imports from China last year.
China's commerce ministry said shortly after the US tariffs took effect that it was forced
to retaliate, meaning $34 billion worth of imported US goods including autos and agricultural products are also subject to 25 per cent
tariffs.
"It's like the first round in a boxing match has just begun
The first punch was given by Trump, and China punched back
There is another 16 billion dollars so Trump will likely give another punch to China soon," said Norihiro Fujito, chief investment
strategist at Mitsubishi UFJ Morgan Stanley Securities.
Friday's gainers included tech shares and automakers, with TDK Corp jumping 5.2
per cent, Advantest Corp up 3.6 per cent, Toyota Motor Corp rising 1.1 per cent and Honda Motor Co surging 1.4 per cent.
Drugmaker Eisai Co
was in the spotlight, jumping 19 per cent after it and Biogen Inc said that the final analysis of a mid-stage trial of their Alzheimer's
drug showed positive results for patients who received the highest dose.
The broader Topix rose 0.9 per cent to 1,691.54
