FX.co ★ Japanese Stocks Climb as Tariff Exemptions Boost Sentiment

On Monday, the Nikkei 225 Index experienced a notable 2% surge, rising above the 34,000 mark, while the broader Topix Index climbed 1.4% to reach 2,500. This positive movement recovered losses incurred during the previous trading session. Market sentiment improved following a decision by US President Donald Trump to exempt consumer electronics from newly imposed "reciprocal" tariffs. This exemption alleviated investor concerns, as it pertains to crucial technology products like smartphones, computers, and semiconductors, which are significant exports from Japan. Investors are also keenly awaiting the upcoming trade negotiations between the United States and Japan. Japan's chief trade negotiator, Akazawa Ryosei, is set to hold discussions with US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer later in the week. The technology sector spearheaded the stock rally, highlighted by substantial gains from Disco Corp (+4.6%), Tokyo Electron (+4.3%), Advantest (+5.1%), SoftBank Group (+3.4%), and Keyence (+1.4%).