Latest news with #Topix
The Mainichi
an hour ago
- Automotive
- The Mainichi
Tokyo stocks end up over 3% at 1-year highs on Japan-US tariff deal
TOKYO (Kyodo) -- Tokyo stocks' key indexes ended up over 3 percent at one-year highs on Wednesday after Japan and the United States reached a trade deal with 15 percent U.S. tariffs on autos and other products, lower than initially proposed by President Donald Trump. The market was further lifted by investors hoping for a new Japanese government as Prime Minister Shigeru Ishiba's resignation is viewed as inevitable, following the major setback for the governing coalition in Sunday's House of Councillors election. The 225-issue Nikkei Stock Average advanced 1,396.40 points, or 3.51 percent, from Tuesday to 41,171.32, its highest level since July 16, 2024. The broader Topix index finished 90.19 points, or 3.18 percent, higher at 2,926.38. All industry sectors advanced on the top-tier Prime Market, with gainers led by transportation equipment, bank and metal product issues. The U.S. dollar briefly weakened to the lower 146 yen range in Tokyo as the Japan-U.S. trade deal helped ease concerns over the prospects for the Japanese economy, boosting the yen. But the U.S. currency later strengthened to the lower 147 yen level at one point as the yen was sold on worries that Japan's financial health may deteriorate further due to fiscal expansion measures that could be adopted in the future, dealers said. Such concerns sent long-term interest rates sharply higher. The yield on the benchmark 10-year Japanese government bond hit 1.600 percent, the highest level since October 2008. Stocks rose across the board, with auto shares surging after Tokyo and Washington agreed that U.S. tariff on automobiles, imposed since April, will be cut to 15 percent from 27.5 percent for Japanese cars. "Since the Japan-U.S. tariff negotiations had been expected to be prolonged, the market reacted positively as the trade deal was announced relatively soon after the national election" on Sunday, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.
Business Times
4 hours ago
- Business
- Business Times
Japan 40-year bond auction sees weakest demand ratio since 2011
[TOKYO] Japan's 40-year government bond auction saw its weakest demand since 2011 amid concerns over government spending and after the US and Japan reached a trade deal. The bid-to-cover ratio, a measure of demand, came in at 2.127, compared to 2.214 at the previous auction. The sale comes after Japanese Prime Minister Shigeru Ishiba's ruling coalition failed to win a majority in the upper house at a vote on Sunday (Jul 20). Fiscal concerns are ramping up after local media reports on Wednesday said that the nation's leader will announce his resignation in August. Bond yields on Wednesday rose across the curve following US President Donald Trump's announcement of a 15 per cent tariff on imports from Japan. The benchmark Topix and Nikkei 225 share gauges both rallied more than 3 per cent as market sentiment improved. Yields have traded recently at multi-year highs at a time when the Bank of Japan (BOJ) has been gradually paring back its massive bond purchases. The Ministry of Finance reduced the issuance of longer-maturity bonds from this month to calm the volatility in the bond market. BOJ deputy governor Shinichi Uchida indicated there's little immediate need to raise the benchmark interest rate in a speech delivered shortly after Trump's announcement. Overnight index swaps show a more than 80 per cent chance of a rate hike by the end of the year on Wednesday, compared to 59 per cent a day earlier. BLOOMBERG
Mint
5 hours ago
- Business
- Mint
Japan 40-Year Bond Auction Sees Weakest Demand Ratio Since 2011
Japan's 40-year government bond auction saw its weakest demand since 2011 amid concerns over government spending and after the US and Japan reached a trade deal. The bid-to-cover ratio, a measure of demand, came in at 2.127, compared to 2.214 at the previous auction. The sale comes after Japanese Prime Minister Shigeru Ishiba's ruling coalition failed to win a majority in the upper house at a vote on Sunday. Fiscal concerns are ramping up after local media reports on Wednesday said that the nation's leader will announce his resignation in August. Bond yields Wednesday rose across the curve following US President Donald Trump's announcement of a 15% tariff on imports from Japan. The benchmark Topix and Nikkei 225 share gauges both rallied more than 3% as market sentiment improved. What Bloomberg strategists say: Long-term JGBs will continue to struggle after the 40-year auction posted the weakest demand since 2011 and that suggests more curve steepening is on the way. — Mark Cranfield, MLIV Strategist. Read more on MLIV Yields have traded recently at multi-year highs at a time when the Bank of Japan has been gradually paring back its massive bond purchases. The Ministry of Finance reduced the issuance of longer-maturity bonds from this month to calm the volatility in the bond market. BOJ Deputy Governor Shinichi Uchida indicated there's little immediate need to raise the benchmark interest rate in a speech delivered shortly after Trump's announcement. Overnight index swaps show a more than 80% chance of a rate hike by the end of the year on Wednesday, compared to 59% a day earlier. This article was generated from an automated news agency feed without modifications to text.
The Mainichi
5 hours ago
- Automotive
- The Mainichi
Tokyo stocks surge over 3% in morning after Japan-US tariff deal
TOKYO (Kyodo) -- Tokyo stocks soared more than 3 percent Wednesday morning after U.S. President Donald Trump said he had struck a "massive" trade deal with Japan, with the reciprocal tariff reduced to 15 percent from 25 percent. The 225-issue Nikkei Stock Average rose 1,278.52 points, or 3.21 percent, from Tuesday to 41,053.44, after hitting a one-year intraday high. The broader Topix index was up 88.23 points, or 3.11 percent, at 2,924.42. All industry sectors advanced on the top-tier Prime Market, with gainers led by transportation equipment, bank and pharmaceutical issues. The U.S. dollar briefly weakened to the lower 146 yen range in Tokyo as the Japan-U.S. trade deal helped ease concerns over the prospects for the Japanese economy, boosting the yen. At noon, the dollar fetched 146.93-94 yen compared with 146.62-72 yen in New York and 147.71-73 yen in Tokyo at 5 p.m. Tuesday. The euro was quoted at $1.1734-1736 and 172.41-45 yen against $1.1750-1760 and 172.31-41 yen in New York and $1.1685-1687 and 172.61-65 yen in Tokyo late Tuesday afternoon. Stocks climbed across the board, with auto shares surging after reports that the U.S. tariff on automobiles, imposed since April, will be cut to 15 percent from 27.5 percent for Japanese cars. Among automakers, Toyota Motor ended the morning up 13.7 percent at 2,837.5 yen, while Mazda Motor surged 17.7 percent to 993.9 yen. "Since the Japan-U.S. tariff negotiations had been expected to be prolonged, the market reacted positively as the trade deal was announced relatively soon after the national election" on Sunday, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co. Despite the sharp advance, Ichikawa warned of the impact of a possible change in Japan's political situation on the market, with some expecting Prime Minister Shigeru Ishiba to resign after his ruling coalition suffered a major setback in the House of Councillors election.
News18
5 hours ago
- Automotive
- News18
Stock Market Updates: Sensex Gains 265 Points, Nifty Holds 25,100 In Pre-Open; Infosys, Paytm In Focus
Global Cues Asian markets opened on a firm footing after former US President Donald Trump announced what he called a 'massive deal" with Japan. The agreement includes a 15% tariff on Japanese exports to the US but also outlines plans for Japan to invest $550 billion in the US economy, particularly in sectors like automobiles, agriculture, and rice. In response, Japan's Nikkei surged 1.85%, and the broader Topix index rose 1.95%. Australia's ASX 200 was up 0.55%, while South Korea's Kospi remained flat. In a post on Truth Social, Trump claimed the deal would allow the US to earn '90% of the profits" and generate 'hundreds of thousands of jobs" in the country.
