FX.co ★ Japanese Shares Track Wall Street Rally

On Monday, the Nikkei 225 surged by 1.4%, surpassing the 40,700 mark, while the broader Topix Index advanced 0.8% to 2,863. Both indexes reached their highest levels in nearly a year. This upward trend echoed the gains from Wall Street, where major US indexes set new record highs due to diminishing tariff concerns and easing geopolitical tensions. Nonetheless, the trade dispute between Japan and the United States remains unresolved, particularly with the persisting 25% US tariff on Japanese car imports hindering bilateral negotiations, showing little progress. Domestically, industrial production data for May fell short of expectations, yet investor optimism remained strong. The technology sector led the advancement, with significant gains posted by Disco (up 3.1%), Lasertec (up 1.3%), Advantest (up 2.7%), Tokyo Electron (up 2.3%), and SoftBank Group (up 5%).