Nikkei index surges to 3-month high as US tariff ruling eases fears
TOKYO (Kyodo) -- The Nikkei stock index climbed sharply Thursday to close at a three-month high and the yen fell against the U.S. dollar, as fears over an economic slowdown eased after a U.S. court blocked President Donald Trump's sweeping tariffs.
The 225-issue Nikkei Stock Average ended up 710.58 points, or 1.88 percent, from Wednesday at 38,432.98, its highest level since Feb. 21. The broader Topix index finished 42.51 points, or 1.53 percent, higher at 2,812.02.
On the top-tier Prime Market, gainers were led by nonferrous metal, transportation equipment and insurance issues.
The U.S dollar briefly strengthened to the lower 146 yen range in Tokyo, as Wednesday's ruling by the U.S. Court of International Trade helped reduce concern that the world's largest economy would contract due to Trump's tariff policy, dealers said.
Stocks surged after the U.S. court said Trump cannot impose some of his levies under emergency powers, including the so-called reciprocal tariffs. The White House has appealed the ruling, according to media reports.
"While tariff negotiations were ongoing, most of the tariffs were ordered to be suspended in an unexpected way, making investors optimistic," said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.
Among notable gainers, heavyweight semiconductor-linked shares rose after U.S. chip giant Nvidia Corp. reported stronger-than-expected earnings results for the February-April period.
Export-oriented auto and electronics issues were also bought as the weaker yen increases exporters' overseas profits when repatriated.
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