Nikkei Rises as US Signals Possible Tariff Relief
Japanese shares rose Wednesday as US Commerce Secretary Howard Lutnick signaled possible tariff relief, while traders weighed Beijing's economic plans and Germany's defense spending.
The Nikkei 225 edged up 0.23%, or 87.06 points, to 37,418.24.
Investors assessed US Commerce Secretary Howard Lutnick's comments on potential tariff easing and China's economic outlook.
Lutnick told Fox Business that Washington could unveil a limited tariff relief plan for Mexico and Canada as soon as Wednesday.
Meanwhile, former President Donald Trump defended tariffs in Congress, warning of short-term disruptions while rejecting a $52 billion semiconductor subsidy.
Meanwhile, Bank of Japan Deputy Governor Shinichi Uchida signaled further rate hikes, citing inflation and wage growth.
January's hike to 0.5% was a necessary step, he said, adding that financial conditions remain loose.
In other economic news, Japan's services sector expanded for a fourth straight month in February, with the au Jibun Bank index climbing to 53.7, its highest in six months.
New business orders grew for an eighth month, though sentiment hit a four-month low.
The composite PMI rose to 52 as input cost inflation quickened, while output price inflation slowed.
In corporate news, Japanese firms including Sony (TYO:6758) and Kawasaki Heavy (TYO:7012) are stockpiling goods in the U.S. ahead of potential tariffs, lifting January exports 8.1% to 1.5 trillion yen ($10 billion), Bloomberg reported
The US has overtaken China as Japan's top export market, though prolonged tariffs could prompt price hikes or production shifts.
Source: Bloomberg
