Tokyo Stock Market Soars Over Trump’s Suspension Of New Tariffs

The Tokyo stock market rallied sharply on Thursday following U.S. President Donald Trump’s announcement of suspension of newly-imposed tariffs.

Japan’s benchmark Nikkei 225 index jumped 2,664.62 points or 8.4per cent, reaching 34,378.65 points about an hour into morning trading.

The surge came after Trump took a step back from his international trade conflict, on Wednesday, announcing a 90-day pause on some tariffs that just came into force.

In spite of the suspension, a universal customs rate of 10 per cent would apply during the three-month break, Trump had said.

Meanwhile, away from the Tokyo Stock market, tariffs on goods from Japan’s neighbour, China, were raised further to 125 per cent, even as U.S. stocks recorded a sharp recovery on Wednesday.

President Donald Trump has announced a 90-day pause for countries hit by higher US tariffs but a trade war with China has escalated.

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In a dramatic change of policy, just hours after levies against roughly 60 of America’s trading partners kicked in, Trump said he was authorising a universal “lowered reciprocal tariff of 10%” as negotiations continued.

At the same time he increased tariffs on goods from China to 125%, accusing Beijing of a “lack of respect” after it retaliated by saying it would impose tariffs of 84% on US imports.

This comes a week after Trump announced import taxes on all goods entering the US, in the biggest upheaval of international trade in decades.

-Agency news