Nikkei climbs to near 1-month high after Xi's speech lifts mood, automakers

  • Reuters
  • Stock Market News
Nikkei climbs to near 1-month high after Xi's speech lifts mood, automakers
Credit: © Reuters.

TOKYO, April 10 (Reuters) - Japanese stocks rose to a near one-month high on Tuesday, led by automakers after Chinese President Xi Jinping promised to lower import tariffs on products including cars, indirectly addressing some of the U.S. concerns that have sparked a trade row between the world's two biggest economies.

The comments come following a week of escalating tariff threats amid U.S. frustration with China's trade and intellectual property policies, rattling financial markets worrying over potential damage to global growth.

The Nikkei .N225 rose 0.5 percent to 21,794.32, the highest closing level since March 15, but off an intraday high of 21,933.99.

The market opened lower but rose after Xi's speech in which he also said China would raise the foreign ownership limit in the automobile sector "as soon as possible" and push previously announced measures to open the financial sector.

"He spoke in more details than the market had expected," said Nobuhiko Kuramochi, a strategist at Mizuho Securities. "The market was focused on mention about some sectors including auto and finance, and he seems to have delivered enough details to satisfy investors."

The transport equipment sector .ITEQP.T gained 1.4 percent, with Toyota Motor Corp 7203.T up 1.4 percent, Honda Motor Co 7267.T jumping 2.6 percent and Mazda Motor Corp 7261.T gaining 0.8 percent.

Companies with large exposure to China also staged a rally.

Industrial robot maker Fanuc Corp 6954.T advanced 3.3 percent, machine tool maker Okuma 6103.T jumped 4.0 percent and construction machinery maker Komatsu 6301.T rose 2.9 percent.

The broader Topix .TOPX gained 0.4 percent to 1,731.94.

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