A softer Japanese Yen contributed to the upside as the USD/JPY pair advanced 0.28% to 142.960. A potential US-Japan trade deal and a weaker Yen may boost demand for Japanese goods and improve corporate earnings.
Nissan Motor Corp. (7201) rose 2.73%, while tech stocks Softbank Group Corp. (9984) and Tokyo Electron (8035) rallied 2.19% and 2.99%, respectively.
Outlook: Trade, Stimulus, and Central Bank Signals
Easing trade tensions may sustain near-term demand for risk assets, though market direction remains tied to progress in US-China negotiations. Meanwhile, Beijing’s stimulus plans and central bank signals will continue shaping investor sentiment.
Additional stimulus from Beijing could offset tariff-related pressures, potentially lifting the Hang Seng Index and Mainland Chinese stocks. However, an extended trade standoff risks disrupting global supply chains and driving inflationary pressures. In this scenario, major central banks may signal dovish policy stances, supporting risk assets.
Under volatile market conditions, investors may benefit from strategies aligned with evolving tariff-related, monetary, and geopolitical risks. For deeper analysis, see our latest market coverage.