(Updates for midday market close)
By Brigid Riley
TOKYO, Feb 4 (Reuters) - Japan's Nikkei share average
rebounded on Tuesday as concerns around U.S. tariffs eased after
President Donald Trump suspended his threat of steep tariffs on
Mexico and Canada, helping battered automakers recover.
The Nikkei gained 1.6% to 39,140.41 as of the midday
break as investors bought back shares after the benchmark index
logged its worst session in four months on Monday. The broader
Topix added 1.4% to sit at 2,757.47.
Trump agreed to a 30-day pause before engaging in
further negotiations with neighbouring Canada and Mexico,
alleviating immediate fears that rattled global markets on
Monday.
Among stocks rallying on Tuesday were Japanese automakers,
which took a hit in the last session as investors weighed how
tariffs on Mexico might impact auto production. Several
automakers have factories in Mexico.
The auto sub-index rebounded, climbing 2.3% to be
one of the top performers among the Tokyo Stock Exchange's 33
industry groups.
However, uncertainties over the implications of the tariffs
going forward remained.
Kazuo Kamitani, an equities strategist at Nomura Securities,
noted that while Toyota ( TM ) recovered some degree of
Monday's losses in early trade, major Japanese automakers didn't
rise as much as expected.
"Considering that we're still looking at a trade war in one
month, it might be difficult for Toyota ( TM ) to see a more
significant bounce back," he said.
Toyota Motor ( TM ) was last up 2.9%.
Along with lingering questions about U.S. tariffs on Canada
and Mexico, trade barriers on China are still due to take effect
within hours.
Among individual stocks, domestic company revenue reports
created some of the biggest percentage winners and losers on the
Nikkei.
Ceramics maker Kyocera ( KYOCF ) soared 9% and Murata
Manufacturing ( MRAAF ) jumped 5.8%. Mitsubishi Motors ( MMTOF )
slid 13.1% to the bottom of the pack.
Of the Nikkei's 225 constituents, 189 rose and 35 declined.
One share was untraded.