Tokyo shares rebounded in the morning on August 15 after four days of losses as fears over a US-North Korea military conflict began to recede. / AFP PHOTO / Behrouz MEHRI
TOKYO, Japan (AFP) — Tokyo shares rebounded Tuesday morning after four days of losses as fears over a US-North Korea military conflict began to recede.
Before the Japanese market opened, North Korean state media reported that leader Kim Jong-Un had been briefed on the plan to fire missiles toward the US Pacific territory of Guam, but hinted he would hold off on the provocative launch.
That came after US Defence Secretary Jim Mattis and Secretary of State Rex Tillerson wrote in The Wall Street Journal that America has “no interest” in regime change in Pyongyang, and stressed the importance of a diplomatic solution to the crisis.
The exchanges were a part of gradual efforts to restore calm after North Korea last week threatened to test-fire missiles toward the palm-fringed island, and US president Donald Trump vowed to respond with devastating force.
“There’s a sense of relief over the North Korean issue with various comments emerging from the US side designed to calm the situation,” Toshihiko Matsuno, a senior strategist at SMBC Friend Securities, told Bloomberg News.
“We can expect investors to buy back shares,” he added.
The benchmark Nikkei 225 index, which ended at its lowest level in more than three months on Monday, rose 1.29 percent, or 252.03 points, to 19,789.13 by the lunch break.
The broader Topix index of all first-section issues jumped 1.26 percent, or 20.07 points, to 1,619.13.
The easing tensions also lifted the dollar in forex trading. The US currency bought 110.19 yen, up from 109.67 yen in New York on Monday.
A weaker yen is positive for Japanese shares as it boosts the value of exporters’ repatriated profits and makes them more competitive overseas.
Toyota shares rose 1.80 percent to 6,291 yen, Sony was up 1.64 percent to sit at 4,327 yen and Panasonic jumped 2.86 percent to 1,493 yen.
FujiFilm Holdings jumped 7.56 percent to 4,240 yen after it announced record profits for the April-June quarter on Monday.
© Agence France-Presse