Japanese Stocks Rise, Led by Chips After U.S. Electronics Tariff Halt
Japanese stocks rose, led by chip equipment makers, after the U.S. halted levies on some consumer electronics and a report said Tokyo will hold tariff talks with Washington this week.
The Nikei 225 Stock Average rose as much as 2.2% to 34,325.59, while the Topix index gained as much as 2% to 2,515.53. Chip-related names such as Advantest Corp., Screen Holdings Co. and TDK Corp. were among the best performers on the Nikkei as of 9:16 a.m., all up more than 4%.
The rebound came after both gauges closed more than 2.5% lower on Friday. The broader Topix has lost more than 5% since Donald Trump announced “reciprocal tariffs” on April 2 on concerns that the levies would hurt the global economy.
Electronics makers provided the biggest boost to the Topix on Monday, with chip-related stocks including Tokyo Electron Ltd. that gained after the Trump administration exempted some smartphones, computers and other gadgets from so-called reciprocal duties.
Trump later downplayed the exemptions, saying he would keep the tariffs in place but that for now companies including Apple Inc. and Nvidia Corp. would not be subject to the 125% levy from China and a flat 10% tariff worldwide. The exemptions were “positive for the stock market on Monday” and “good news for Apple supply chain stocks” such as Murata Manufacturing Co. and Taiyo Yuden Co., U.K.-based equity analyst Pelham Smithers wrote in a note.
Both stocks rose more than 4.5% in early trading Monday. “While tariff concerns remain and the market may not rally sharply, at least the market may be showing signs of a reversal,” said Shoji Hirakawa, chief global strategist at Tokai Tokyo Intelligence Lab.
Investors will also be watching for any developments in tariff negotiations after local broadcaster NHK reported that Japan’s top trade representative Ryosei Akazawa will visit the U.S. this week for talks with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer.
Separately, Trump is engaged in serious trade negotiations with China’s strategic partners, including Japan and South Korea, Politico reported, citing two people close to the White House.
Source: Bloomberg
