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16:23, 15-Aug-2017
Tokyo shares rebound on easing DPRK fears
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Tokyo shares rebounded Tuesday after four days of losses, as fears over a US-DPRK military conflict began to recede.
Before the Japanese market opened, DPRK leader Kim Jong Un said he would hold off on a provocative missile strike near the US Pacific territory of Guam.
That came after US Defence Secretary Jim Mattis and Secretary of State Rex Tillerson wrote in The Wall Street Journal that the US had "no interest" in regime change in Pyongyang, and stressed the importance of a diplomatic solution.
The exchanges were part of gradual efforts to restore calm after DPRK last week spooked markets by threatening to test-fire missiles toward the palm-fringed island, and US President Donald Trump vowed to respond with devastating force.
DPRK leader Kim Jong Un said he would hold off on a provocative missile strike near the US Pacific territory of Guam. /AP Photo
DPRK leader Kim Jong Un said he would hold off on a provocative missile strike near the US Pacific territory of Guam. /AP Photo
According to Bloomberg News report, Toshihiko Matsuno, a senior strategist at SMBC Friend Securities said "there's a sense of relief over the North Korean issue with various comments emerging from the US side designed to calm the situation".
Tokyo's benchmark Nikkei 225 index, which ended at its lowest level in more than three months on Monday, jumped 1.11 percent, or 216.21 points, to close at 19,753.31.
The broader Topix index of all first-section issues gained 1.07 percent, or 17.15 points, to finish at 1,616.21.
The easing tensions also lifted the dollar, with the unit at 110.35 yen, up from 109.67 yen in New York on Monday.
AP Photo
AP Photo
A downturn in the yen is a plus for Japanese shares as it inflates the value of exporters' repatriated profits and makes them more competitive overseas.
Toyota shares gained 1.53 percent to close at 6,275 yen, Sony was up 0.98 percent to end the day at 4,299 yen and Panasonic jumped 2.85 percent to 1,493 yen.
Bank shares also rose, with Mitsubishi UFJ jumping 1.68 percent to 700.1 yen, while rival Sumitomo Mitsui Financial Group rose 1.46 percent to close at 4,161 yen.
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Source(s): AFP