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The Mainichi
3 days ago
- Business
- The Mainichi
Tokyo stocks drop on concern over changing US tariff policies
TOKYO (Kyodo) -- Tokyo stocks fell Monday on selling fueled by growing concerns over ever-changing U.S. tariff policies after President Donald Trump announced a doubling of levies on steel and aluminum. The 225-issue Nikkei Stock Average ended down 494.43 points, or 1.30 percent, from Friday at 37,470.67. The broader Topix index finished 24.28 points, or 0.87 percent, lower at 2,777.29. On the top-tier Prime Market, decliners were led by rubber product, precision instrument and transportation equipment issues. The U.S. dollar weakened to around the 143 yen line in Tokyo as the Japanese currency, seen as a safe-haven asset, was bought on growing worries about U.S.-China trade tensions after Trump accused China of violating a trade deal, dealers said. Stocks dropped as fears of a global economic slowdown grew after Trump said Friday that he will raise tariffs on steel and aluminum imports to 50 percent from 25 percent imposed by his administration earlier this year. "The flip-flops in his policy make it difficult for companies to make investment decisions in the long run, possibly causing them to hold back on capital spending," said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank. In addition to Trump's announcement of higher tariff rates on steel and aluminum, the concerns over rekindled U.S.-China trade frictions also weighed on the market, brokers said. "The optimistic mood in May likely changed this month," as prolonged uncertainty will increasingly weigh on the economy and have a negative impact on risk assets, Yamaguchi said.
The Mainichi
29-05-2025
- Business
- The Mainichi
Nikkei index surges to 3-month high as US tariff ruling eases fears
TOKYO (Kyodo) -- The Nikkei stock index climbed sharply Thursday to close at a three-month high and the yen fell against the U.S. dollar, as fears over an economic slowdown eased after a U.S. court blocked President Donald Trump's sweeping tariffs. The 225-issue Nikkei Stock Average ended up 710.58 points, or 1.88 percent, from Wednesday at 38,432.98, its highest level since Feb. 21. The broader Topix index finished 42.51 points, or 1.53 percent, higher at 2,812.02. On the top-tier Prime Market, gainers were led by nonferrous metal, transportation equipment and insurance issues. The U.S dollar briefly strengthened to the lower 146 yen range in Tokyo, as Wednesday's ruling by the U.S. Court of International Trade helped reduce concern that the world's largest economy would contract due to Trump's tariff policy, dealers said. Stocks surged after the U.S. court said Trump cannot impose some of his levies under emergency powers, including the so-called reciprocal tariffs. The White House has appealed the ruling, according to media reports. "While tariff negotiations were ongoing, most of the tariffs were ordered to be suspended in an unexpected way, making investors optimistic," said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank. Among notable gainers, heavyweight semiconductor-linked shares rose after U.S. chip giant Nvidia Corp. reported stronger-than-expected earnings results for the February-April period. Export-oriented auto and electronics issues were also bought as the weaker yen increases exporters' overseas profits when repatriated.
The Mainichi
27-05-2025
- Business
- The Mainichi
Tokyo stocks end higher as yen weakens on report on bond issuance
TOKYO (Kyodo) -- Tokyo stocks erased earlier losses to close higher Tuesday, lifted by buying of export-oriented shares as the yen weakened following a report that Japan may consider reducing issuance of super-long bonds. The 225-issue Nikkei Stock Average ended up 192.58 points, or 0.51 percent, from Monday at 37,724.11. The broader Topix index finished 17.58 points, or 0.64 percent, higher at 2,769.49. On the top-tier Prime Market, gainers were led by nonferrous metal, insurance, and machinery issues. The U.S. dollar briefly slipped to the lower 142 yen range in Tokyo, as speculation that the Bank of Japan may raise interest rates prompted yen buying after its chief, Kazuo Ueda, said the central bank will keep rates on an upward path if the economy and prices develop as expected. The dollar later climbed to the mid-143 yen range, as the yen was sold after yields on super long-term Japanese government bonds fell, with the report fueling speculation that the Finance Ministry may cut issuance to stabilize the market, dealers said. The Nikkei stock index was initially pressured by selling to lock in gains after advancing more than 500 points over the past two trading days. However, the key indexes ended higher as export-linked auto and machinery issues were bought on the weaker yen, which increases exporters' overseas profits when repatriated. Masahiro Yamaguchi, head of investment research at SMBC Trust Bank, said investors were waiting for fresh trading incentives after U.S. markets were closed Monday and U.S. President Donald Trump said he will delay 50 percent tariffs on imports from the European Union. "Investors took a cue from the yen's depreciation amid a lack of other incentives," he said.
The Mainichi
23-05-2025
- Business
- The Mainichi
Tokyo stocks rebound on firm chip issues amid lower bond yields
TOKYO (Kyodo) -- Tokyo stocks rebounded Friday, driven by the buying of semiconductor-related issues amid declines in long-term Japanese interest rates, but gains were trimmed by a stronger yen hurting some exporters. The 225-issue Nikkei Stock Average ended up 174.60 points, or 0.47 percent, from Thursday at 37,160.47. The broader Topix index finished 18.43 points, or 0.68 percent, higher at 2,735.52. On the top-tier Prime Market, gainers were led by nonferrous metal, machinery and insurance issues. The U.S. dollar dropped to the lower 143 yen level in Tokyo amid lingering worries about the deterioration of U.S. fiscal health due to President Donald Trump's tax cut plan, dealers said. Stocks were boosted by heavyweight chip shares that tracked overnight gains by the tech-heavy U.S. Nasdaq index, while worries about higher borrowing costs eased after the yield on the benchmark 10-year Japanese government fell, brokers said. However, gains were capped as some export-oriented machinery and electronics issues were sold on the firmer yen, which decreases exporters' overseas profits when repatriated. Japanese Prime Minister Shigeru Ishiba and U.S. President Donald Trump agreed in phone talks earlier in the day to explore holding a face-to-face meeting in June as ministerial-level tariff negotiations continue, but its impact on the market was limited, brokers said. "A wait-and-see mood prevailed ahead of a three-day weekend in the United States, while investors are waiting for the outcome of ongoing Japan-U.S. tariff talks," said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.
The Mainichi
19-05-2025
- Business
- The Mainichi
Tokyo stocks fall as US downgrade fuels fears over stronger yen
TOKYO (Kyodo) -- Tokyo stocks dropped Monday, weighed down by the selling of some exporters as the downgrading of U.S. debt by a major credit rating agency raised concerns about the yen's further appreciation against the U.S. dollar. The 225-issue Nikkei Stock Average ended down 255.09 points, or 0.68 percent, from Friday at 37,498.63. The broader Topix index finished 2.06 points, or 0.08 percent, lower at 2,738.39. On the top-tier Prime Market, decliners were led by marine transportation, oil and coal product, and insurance issues. The dollar fell to the upper 144 yen range in Tokyo, pressured by selling after Moody's on Friday downgraded its U.S. credit rating by one notch from top triple-A rating. Stocks declined as some export-oriented machinery and electronics issues were sold on the firmer yen, which decreases exporters' overseas profits when repatriated, with the move by the rating agency fueling fears about the yen's further gain versus the dollar. "Rising (U.S.) interest rates stemming from concerns about fiscal health leads to a weaker dollar, thus having a negative impact on Japanese stocks," said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank. "Investors were worried about U.S. fiscal health even before the downgrade, giving upward pressure on interest rates," Yamaguchi said, adding that the rating agency's decision further raised concerns about deteriorating financial strength in the world's largest economy. Shares of companies that have a strong business base in China were also sold after Chinese data showed retail sales growth slowed in April, brokers said.
