August 27, 2019 / 1:51 AM / 23 days ago

Tokyo stocks rebound on Trump's comments on Japan auto tariffs; Subaru, tyremakers shine

TOKYO, Aug 27 (Reuters) - Japanese shares staged a modest rebound on Tuesday after a sharp selloff in the previous session as investors were relieved by U.S. President Donald Trump’s comments that the United States would not imminently impose new tariffs on autos imported from Japan.

The Nikkei share average advanced 1.2% to 20,501.98 in midmorning trade, with Subaru and tyremakers leading the gains. On Monday, benchmark Nikkei lost 2.2% previous to hit the lowest closing level since January 11.

Asked if he was still considering the U.S. tariffs on Japanese cars, President Trump told a news conference late on Monday that his administration is not looking at that although it’s something he could do at a later date if he wanted to.

On Tuesday, shares of carmakers, tyremakers and car parts makers were boosted by his comments.

Subaru, which has the biggest revenue exposure to the United States among Japanese carmakers, jumped 6.2%, and the transport equipment sector was the best performing sector among the Tokyo Stock Exchange’s 33 sub-indexes, gaining 1.5%.

Sumitomo Rubber climbed 2.8%, Yokohama Rubber rose 2.5%, and the rubber products sector was the third best performing sub-index, gaining 1.4%.

Auto part makers Denso and Aisin Seiki gained 1.4% and 1.8%, respectively.

The broader Topix rose 1.0% to 1,492.44, with Tokyo’s 33 subindexes gaining.

On Wall Street, all three major stock indexes bounced back on Monday after President Trump predicted a trade deal with China, but fell short of reclaiming all of its losses on Friday. (Reporting by Tomo Uetake; Editing by Simon Cameron-Moore)

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