Japanese Shares Struggle as Trade Tensions Escalate
The Nikkei 225 and Topix indexes struggled to find clear direction on Wednesday as the intensifying trade war between the US and its major trading partners weighed on financial markets. President Trump's 25% tariffs on goods from Canada and Mexico, along with a 10% duty on Chinese imports, took effect on Tuesday, sparking retaliatory actions from those countries.
However, US Commerce Secretary Howard Lutnick suggested that a potential compromise between the US, Canada, and Mexico on tariffs might be possible. In Japan, data revealed that services sector growth reached a six-month high in February, driven by stronger demand. Notable gainers included Kawasaki Heavy Industries (1.4%), Toyota Motor (1.9%), and SoftBank Group (0.9%), while sharp declines were seen in shares of Disco (-1.4%), Mizuho Financial (-2.9%), and Mitsubishi UFJ (-1.4%).
Source: Trading Economics
