Hit by 25% Tariffs, Why is the Japanese Market Actually Rising?
The Nikkei 225 index rose 0.33% to 39,821 on Wednesday, while the Topix index rose 0.41% to 2,828. These gains occurred despite concerns over new US tariffs continuing to loom over the market. Investors appeared optimistic, extending the previous session's rally, even though Japan will be subject to 25% tariffs starting August 1 as part of President Donald Trump's trade policy.
Japanese Prime Minister Shigeru Ishiba called the US tariffs "very regrettable" but reiterated Tokyo's commitment to continuing dialogue with Washington to find a mutual solution. Tensions escalated after Trump also announced a 50% tariff on copper imports and potential tariffs of up to 200% on pharmaceutical products, sparking concerns about disruptions to global trade.
Despite the less-than-favorable global backdrop, several blue-chip stocks continued to record gains. Sanrio led the way with a 2.5% surge, followed by Toyota Motor (up 0.9%) and SoftBank Group (up 0.8%). This indicates that investors still believe in the fundamental strength of large Japanese issuers, especially those with strong domestic exposure.
The resilience of the Japanese market suggests that market participants still see opportunities, despite heightened global risks. Support from liquidity and expectations for corporate earnings reports could also be strengthening factors in the near term.
Source: (ayu-newsmaker)
