Japan's Nikkei Stock Average Climbs for Fourth Day on US-China Trade Framework; Hino Plunges
Yomiuri Shimbun file photo
The Tokyo Stock Exchange
TOKYO, June 11 (Reuters) – Japan's Nikkei share gauge climbed for a fourth straight session on Wednesday after U.S. and Chinese officials agreed on a framework to put their trade truce back on track and remove China's curbs on rare earths, supporting demand for risk assets.
Chip-sector heavyweights Sumco 3436.T and Tokyo Electron 8035.T surged 7% and 3.6%, respectively. Mazda Motor 7261.T climbed 1.2% as the yen weakened, boosting export shares.
The Nikkei 225 Index .N225 climbed 0.5% as of the midday break, set for its longest winning streak in about a month. So far, it is down 4.2% for the year. The broader Topix gauge .TOPX was flat.
U.S. President Donald Trump's on-again, off-again tariff spats have largely been factored into global equity prices, but Japanese stocks have yet to recover to highs seen around the beginning of the year, said Tatsunori Kawai, chief strategist at Mitsubishi UFJ eSmart Securities.
After meetings by the Bank of Japan and the Federal Reserve next week, summer salary bonuses and company dividends in Japan may be factors to push domestic shares higher.
'With those funds in the pipeline, I think the inflow of money into the market will continue,' Kawai said. 'After we get through next week, I think it's basically easier to go higher and catch up with U.S. equities.'
Sumco was the biggest gainer on the Nikkei, followed by Isetan Mitsukoshi 3099.T gaining 6.2%.
The biggest loser was Hino Motors 7205.T down 17%, after the truckmaker and unit of Toyota Motor 7203.T said it would issue new shares as part of a merger agreement with Mitsubishi Fuso.
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Japan Times
2 hours ago
- Japan Times
India should join the Global Combat Air Program — but not just yet
As the world learns to navigate an era of volatile American politics, global defense partnerships are being reshaped. Donald Trump's chaotic return to the White House has called into question America' reliability as a security guarantor and U.S. allies are seeking new forms of international cooperation. An ambitious expression of this shift is the Global Combat Air Program, a joint effort between Japan, the United Kingdom and Italy to develop a next-generation fighter jet by 2035. GCAP is more than just a weapons platform. It is a statement of strategic autonomy, industrial innovation and trilateral cooperation among democracies that are, each in their own way, redefining their role on the global stage. And now, as reports emerge that Japan and India have discussed possible Indian participation in GCAP, the project stands at a potential inflection point. The idea of including India — one of the world's fastest-growing economies and an increasingly assertive geopolitical actor — makes strategic sense. But it also presents diplomatic and practical challenges that cannot be ignored. As with many promising international endeavors, timing is everything. Opening for Japan-India ties India's inclusion in GCAP could offer a breakthrough in Japan-India relations. Over the past two decades, the Asian nations have built a robust security partnership. From the 2008 Joint Declaration on Security Cooperation to more recent agreements on defense-equipment acquisitions and the sharing of sensitive security information, Tokyo and New Delhi have grown comfortable with each other in the defense realm. Joint military exercises are now routine and there is a shared interest in counterbalancing China's growing influence in the Indo-Pacific. Yet this bilateral relationship has stalled in recent years. Prime Minister Narendra Modi's failure to visit Japan in 2024 broke an established pattern, and with India now positioning itself as the de facto leader of the Global South, Japan may be losing relative importance in New Delhi's strategic calculus. Including India in GCAP could re-energize this relationship by offering a high-stakes, high-visibility partnership that aligns with India's long-term security and technological ambitions. For Japan, whose defense industry has long struggled under strict export controls, GCAP represents a rare opportunity to lead in a collaborative international project. Since Japan revised its arms transfer policy in 2014, and especially after its 2024 decision to allow exports of finished defense products under GCAP, it has cautiously moved toward becoming a more active player in global defense markets. Including India could bring financial investment, manufacturing capacity and political clout to the initiative. Lessons of the past However, the road to integrating India into such a high-technology, multinational defense program is strewn with potential pitfalls. Japan — and its British and Italian partners — must approach the issue with cautious optimism rather than uncritical enthusiasm. India's track record in defense negotiations is complex, often fraught with delays, policy reversals and insistent demands for domestic production and technology transfer. A previous fighter-jet purchase by New Delhi stands as a cautionary tale. After years of negotiations, India abandoned its Medium Multi-Role Combat Aircraft tender competition, which intended to supply its air force with 126 fighters. It ultimately settled for 36 jets under new terms with the winner, Dassault of France — hardly a model of streamlined procurement. Japan has its own bitter experience. Talks over the amphibious U.S.-2 search and rescue aircraft, once hailed as a landmark opportunity for Japanese defense exports, fizzled after years of talks due to cost concerns. And in the economic sphere, skeptics can point to India's withdrawal from the Regional Comprehensive Economic Partnership (RCEP) in 2019 — despite Tokyo's encouragement — citing unresolved trade imbalances and geopolitical concerns. These cases point to a broader reality: India negotiates hard, takes its time and rarely yields on its demands for strategic autonomy. This negotiating culture, while entirely within India's rights as a sovereign nation, may be fundamentally at odds with the pace and structure of GCAP, which is already a delicate balancing act among three countries with differing defense needs and industrial capacities. A future invitation The GCAP's schedule is ambitious. 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It would align with the growing convergence between India and the West, particularly as China's influence looms large and the United States vacillates between engagement and retrenchment. That said, this must be done with the clarity that strategic alignment cannot come at the cost of operational failure. GCAP is too important and too delicate to risk being overwhelmed by difficult negotiations or mismatched expectations. The priority now must be maintaining GCAP's momentum and cohesion. Tokyo, London and Rome should continue quiet consultations with New Delhi, keeping the option open and signaling a willingness to explore future cooperation. India, with its ambition, industrial potential and rising global stature is a natural candidate for eventual participation in a program like GCAP — but not just yet. Tomoko Kiyota is an associate professor at Nagasaki University.
Yomiuri Shimbun
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- Yomiuri Shimbun
Japan Party Leaders Face Off Over No-Confidence Motion; Opposition Hesitant Amid Tariff Negotiations With U.S.
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