Japanese Stocks Rise on Tariff Talk Hopes; Nippon Steel Rises
Japanese stocks edged higher in early trading after the country’s chief tariff negotiator indicated he is eyeing a trade deal with the U.S. before the G7 meeting in June. The Topix rose 0.3% to 2,744.09 as of 9:16 a.m. in Tokyo, with the Nikkei 225 gaining 0.4% to 37,308.94. Nippon Steel Corp. was the Topix’s top gainer, rising more than 7% after Trump announced a long-awaited deal with U.S. Steel Corp.
While Trump has not explicitly endorsed the previously proposed $14.1 billion takeover of Nippon Steel, shares of United States Steel Corp. jumped 21% on Friday. Market sentiment was helped by an indication from Japan’s chief trade negotiator, Ryosei Akazawa, that he plans to conclude tariff talks in time for a June meeting between Trump and Japanese Prime Minister Shigeru Ishiba, following the U.S. president’s sudden shift to allow a partnership between the two countries’ steelmakers.
“Given that tariff negotiations between Japan and the U.S. are ongoing, it is clear that compared to two months ago, the situation is moving toward a settlement,” said Shoji Hirakawa, chief global strategist at Tokai Tokyo Intelligence Lab.
The yen weakened after the latest comments from Trump, who last week threatened to impose aggressive tariffs on the EU and Apple Inc.
Concerns about the impact on Apple and its suppliers likely limited gains in stocks on Monday, Hirakawa said. Shares of Japanese suppliers such as TDK Corp. fell early Monday. Concerns about U.S. tariffs on the European Union, after Trump extended the deadline for 50% tariffs on EU goods to July 9, are also likely to fuel caution, Hirakawa added.
Source: Bloomberg
