Asian shares are mostly lower, while Tokyo’s Nikkei jumps 2 pc
MANILA, Philippines: Asian shares were mostly lower Friday while Tokyo’s benchmark jumped more than 2% after Japanese officials said they had resolved questions over the tariff that will apply to exports to the US.
The new US tariffs on Japanese goods that took effect Thursday did not match an agreement between Washington and Tokyo on a 15% level, and Japan’s main trade envoy said the US side had agreed to correct the problem.
The Nikkei 225 in Tokyo gained 2.2% to 41,977.65 and is close to a record level. Toyota Motor Corp. jumped 3.9% and Honda Motor Co. was up 4%. Automakers are among the manufacturers with the most at stake regarding exports to the US
Elsewhere in Asia, most markets slipped following declines on Wall Street.
Hong Kong’s Hang Seng declined 0.7% to 24,916.15, while the Shanghai Composite index inched up less than 0.1% to 3,642.10.
South Korea’s Kospi slipped 0.7% to 3,206.86. In Australia, the S&P/ASX 200 slipped 0.2% to 8,813.70.
Taiwan’s Taiex gained 0.2% and the Sensex in India was down 0.5%.
“We’re heading into a stretch where markets will punish certainty. The momentum winds are shapeshifters—what looks like a slam dunk on Monday can turn into a face plant by Friday,” Stephen Innes of SPI Asset Management said in a commentary.
On Thursday, the S&P 500 edged 0.1% lower and the Dow industrials dipped 0.5%. The Nasdaq composite rose 0.3% to a record as shares in Apple and some computer chip makers soared.
Intel sank 3.1% after Trump called for its CEO to resign, while accusing him of being “highly CONFLICTED,” though he gave no evidence.
But Apple rose 3.2% after its CEO Tim Cook joined Trump at the White House on Wednesday to say it’s increasing its investment in US manufacturing by an additional $100 billion over the next four years.
Computer chip makers with big investments or manufacturing capacity in the US surged higher after Trump ordered 100% tariffs on imported semiconductors but said companies with big US investments would be exempt. Shares in Advanced Micro Devices jumped 5.7% and Nvidia gained 0.8%.
A worse-than-expected report on the US jobs market last week added to worries that President Donald Trump’s tariffs are damaging the economy. But hopes for coming cuts to interest rates by the Federal Reserve and a torrent of stronger-than-expected profit reports from big US companies are helping to offset those concerns.
Lower interest rates can give the economy and investment prices a boost, though the downside is that they can also push inflation higher at a time when tariffs are also pushing prices up.
The Bank of England cut its main interest rate on Thursday in hopes of bolstering the sluggish UK economy.
In other dealings early Friday, US benchmark crude oil shed 10 cents to $63.78 per barrel. Brent crude, the international standard, lost 6 cents to $66.37 per barrel
The US dollar rose to 147.16 Japanese yen from 147.13 yen. The euro slipped to $1.1660 from $1.1667. __ AP Business Writers Stan Choe and Matt Ott contributed.
By RSS/AP
