Tokyo's Nikkei rallies on weak yen

[TOKYO] Tokyo's benchmark Nikkei index jumped more than 1 per cent on Thursday, supported by a cheaper yen against the dollar, as investors digested concerns over a US-China trade war.

The Nikkei 225 index advanced 1.17 per cent, or 255.75 points, to 22,187.96, while the broader Topix index was up 0.46 percent, or 7.80 points, at 1,709.68.

"Japanese shares are seen supported by a cheaper yen against the dollar in early trade despite falls in US shares," Okasan Online Securities said in a commentary.

The dollar fetched 112.25 yen in Asian afternoon trade, against 112.03 yen in New York and 111.05 yen in Tokyo on Wednesday.

"The market sharply reacted to the fresh US tariffs on Chinese goods yesterday, but trading is calming as the actual impact of the trade dispute appears not to be imminent," said Hikaru Sato, senior technical analyst at Daiwa Securities.

"However, the dispute may affect investors' sentiment at any time if fresh news hits the market again," Sato told AFP.

US President Donald Trump's administration late Tuesday launched the process to impose fresh tariffs on another US$200 billion in Chinese goods, an escalation only days after tit-for-tat duties on US$34 billion in goods came into effect.

Beijing vowed to retaliate against the latest move, calling the US action "totally unacceptable".

The development sent global stocks tumbling on Wednesday, and on Wall Street the Dow dropped 0.9 per cent.

In Tokyo on Thursday, Sony rose 0.90 per cent to 5,794 yen and Panasonic edged up 0.39 per cent to 1,404 yen.

Market heavyweight Fast Retailing, the operator of Uniqlo casual wear, surged 3.81 per cent to 49,230 yen.

Toyota jumped 1.43 per cent to 7,234 yen with Nissan up 0.19 per cent at 1,022 yen.

AFP