13.05.202500:36:20UTC+00Japanese Shares Track Wall Street Higher

On Tuesday, the Nikkei 225 Index climbed by 2.1% to surpass 38,400, while the broader Topix Index advanced by 1.8% to reach 2,790. This rise in Japanese stocks marked a peak not seen in several months, driven by a robust rally on Wall Street. The positive momentum followed an agreement between the US and China to temporarily reduce tariffs, alleviating concerns of an extended trade conflict and lowering the prospect of a global economic downturn. In a connected development, Japanese Prime Minister Shigeru Ishiba stated that Japan remains firm on not accepting a preliminary trade deal with the US unless it includes provisions concerning the automotive sector, specifically urging Washington to abolish its 25% tariff on Japanese vehicles. Concurrently, the latest summary of opinions from the Bank of Japan indicated that policymakers are leaning towards a cautious approach, highlighting significant uncertainties related to economic growth and price stability. Standout performers in the market included Disco (+3.2%), Mitsubishi UFJ (+4.9%), Advantest (+2.4%), Tokyo Electron (+4.7%), and Toyota Motor (+4.3%).