FX.co ★ Japanese Shares Wobble in Post-Holiday Trade

The Nikkei 225 index momentarily surpassed the 45,000 threshold on Tuesday for the first time, before scaling back as investors returned from a long holiday weekend, taking into account the global trade and interest rate outlook. On Monday, U.S. President Donald Trump stated that trade discussions between the United States and China in Spain were showing progress. He mentioned an upcoming call with Chinese President Xi Jinping scheduled for Friday, aimed at finalizing trade terms. Meanwhile, investors were anticipating a potential interest rate reduction from the U.S. Federal Reserve later this week. Domestically, the Bank of Japan is expected to maintain its policy interest rate at 0.5% while it evaluates the repercussions of U.S. tariffs on Japan's export-oriented economy. In the corporate arena, shares of Disco climbed 6.3% and Tokyo Electron rose by 2.6%, whereas Nintendo saw a decline of 3.8% and Sanrio dropped by 2.9%.