FX.co ★ Japanese Stocks Decline as Rally Stalls

The Nikkei 225 Index decreased by 1% to approximately 37,700, while the Topix Index declined 0.7% to 2,745 on Thursday. This marks the second consecutive session of decline for Japanese stocks, as the recent market enthusiasm, spurred by the US-China trade agreement, has started to wane. Analysts have pointed out that although the alleviation of global trade tensions provides some relief, the overall outlook for corporate earnings and economic growth remains largely consistent. Additionally, investors are paying close attention to the progress of a potential US-Japan trade deal, with Tokyo striving to reach an agreement by June. In company-related developments, Sony Group experienced a 4.7% drop after anticipating a $700 million tariff impact for fiscal 2025. Subaru fell 4.6% amid concerns of a possible $2.5 billion tariff imposition, although the automaker revealed plans to enhance US production to counteract the pressure. Other significant declines were observed in Disco (-1.6%), Fujikura (-1.7%), Kawasaki Heavy Industries (-2%), Nintendo (-2.9%), and Toyota Motor (-3%).