Japanese Stocks Retreat as Investors Turn Cautious Despite Trade Talk Progress
Japanese shares opened lower on Thursday as investors remained wary after a week of rallies supported by trade talk advancements and economic strength.
The Nikkei 225 fell 295.77 points to open at 37,832.36,
In a move suggesting improved trade relations, China on Wednesday lifted restrictions on exports of rare earth elements and other military-applicable goods and technologies.
This follows an announcement from China's Ministry of Commerce that Beijing and Washington have agreed to a temporary 90-day reduction in tariffs on each other's goods.
At home, Japanese firms are bracing for a tariff hit on their earnings. Sony expects a $700 million tariff hit for its fiscal 2025.
Meanwhile, Subaru, faced with a potential $2.5 billion tariff hit, plans to expand production in the US to mitigate the impact of tariffs imposed by US President Donald Trump, according to Bloomberg News on Wednesday.
Earlier during the week, Japanese car manufacturers reported facing a collective $19 billion tariff impact from the US tariff, according to the news wire.
Source: MT newswires
