FX.co ★ Japanese Shares Gain on US-China Trade Talks

On Monday, the Nikkei 225 Index climbed by 0.9% to surpass 38,000, while the broader Topix Index increased by 0.7% to 2,788. This marked the second consecutive session of gains for Japanese equities, driven by renewed optimism surrounding US-China trade relations. The market's positive sentiment was bolstered by reports indicating that Beijing had granted temporary approvals for rare earth exports, alongside the news that US-based Boeing had resumed commercial jet deliveries to China, suggesting a potential de-escalation in trade tensions. Domestically, Japan's GDP for the first quarter was revised upwards, showing zero growth as opposed to the initially estimated 0.2% contraction. Nonetheless, this result still signifies a significant slowdown compared to the 0.6% growth recorded in the previous quarter. The rally was prominently led by technology stocks, with key increases from companies such as Advantest, which rose by 4.5%, Lasertec by 3.5%, and Disco by 1.4%. Other significant gainers included Fujikura with a 2.3% rise, Sanrio at 3.1%, and Mizuho Financial at 1.9%.