Financial markets cheer US-China tariff reprieve
Financial markets are welcoming the announcement of a US and China deal that reduced fears of a full-blown trade war.
The world's two biggest economies say they will cut some import tariffs for a fixed period and continue trade talks.
The agreement sparked a surge of buying on global stock markets, including in Japan. The benchmark Nikkei 225 briefly rose more than 800 points or about 2 percent on Tuesday morning.
The gains in Tokyo follow a sharp rebound in New York equities on Monday, with the major stock indexes all gaining.
The Dow Jones Industrial Average surged 1,160 points, or 2.8 percent, from Friday's close, ending the day at 42,410. Technology-related shares led the surge to lift the Nasdaq by more than 4 percent.
The Dow last traded above the 42,000 mark on April 2nd, or before US President Donald Trump announced what he calls reciprocal tariffs on global trading partners.
Investors also bought the dollar. The US currency climbed to the mid-148 level against the Japanese yen at one point, or the highest in about one month. Japan prepares for trade, tariff talks with US
Officials in Japan's government are now said to be analyzing the Washington-Beijing deal as they prepare for their own third-round of tariff talks with the US.
Japanese Trade Minister Muto Yoji says the government will closely monitor developments.
"I'd like to refrain from making a prejudgment on how the situation of other countries' talks will affect the negotiations between Japan and the US," he said in a news conference. "The government will make the utmost effort to reach an early agreement while protecting Japan's national interests."
Meanwhile, some Japanese officials take the view that Washington may be shifting its tariff strategy amid concern it may slow the US economy.
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