Japan Nikkei rebounds 1.12% on bargain hunting

Headline shares of the Japan share market ended higher on Friday, 06 July 2018, as investors chased for bargain hunting after benchmark indices closing at a three- month low on Thursday. Market rebound was supported by overnight rise in U.S. equities and buybacks after the planned U.S. tariff implementation against Chinese imports, removing an uncertain factor from the market. Among TSE33 issues, 29 issues inclined, while 4 declined, with shares of Pharmaceutical, Wholesale Trade, Pulp & Paper, Electric Power & Gas, Iron & Steel, and Marine Transportation issues being notable gainers. At the close, the benchmark Nikkei 225 index gained 1.12%, or 241.15 points, to 21,788.14. The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 0.92%, or 15.34 points, to 1,691.54.

There was a level of calm on Asian markets after Trump's tariffs began on Chinese products. The United States tariffs on Chinese exports began from Friday, 06 July 2018. China's customs department informed markets on Thursday that China's retaliatory tariffs on US goods will take effect immediately after US tariffs on Chinese imports kick in. The Trump administration has levied a 25% tariff on $34 billion in Chinese goods, while the Chinese government has retaliated by announcing tariffs on the same value of U.S. goods.

Eisai jumped 19.5% after the Japanese drug maker and its U.S. research partner Biogen announced Friday positive results in their clinical trial for a new drug for Alzheimer's disease.

Mayonnaise maker Kewpie gained 4.7% a day after announcing strong half-year earnings and revising up earnings projections for the full year to November.

Meanwhile, Gurunavi dropped 9.2% after Mizuho Securities Co. lowered its investment rating and stock price target for the online restaurant information provider.

CURRENCY NEWS: The Japanese yen was little changed against U.S. dollar in Tokyo on Friday. The dollar fetched 110.54-55 yen compared with 110.61-71 yen in New York and 110.65-66 yen on Thursday in Tokyo.

OFFSHORE MARKET: US share markets were closed higher on Thursday, on reports that the United States and the European Union might agree to drop auto tariffs. The Dow Jones Industrial Average .DJI rose 181.92 points,or 0.75%, to 24,356.74, the S&P 500 .SPX gained 23.39points, or 0.86%, to 2,736.61 and the Nasdaq Composite .IXIC added 83.75 points, or 1.12%, to 7,586.43.

European share markets rose on Thursday amid optimism that U.S. President Donald Trump could hold off on threats to slap tariffs on European cars. The STOXX600 index rose by 0.4%; German Dax rose by 1.2%; UK FTSE index rose 0.4%.

COMMODITY NEWS: Crude oil prices fell on Thursday as US crude stockpiles rose by 1.3 million barrels last week according to the US EIA. Markets had a expected a 3.5 million decline. Brent crude fell by US85 cents or 1.1% to US$77.39 a barrel and the US Nymex fell by US$1.20 or 1.6% to US$72.94 a barrel.

Base metal prices were mixed on the London Metal Exchange (LME) on Thursday. Zinc (-0.5%) fell to 12-month lows due to higher supply expectations. Lead rose by 1.4%.

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