FX.co ★ Shares in Japan Close 0.7% Lower

The Nikkei index declined by 255 points, or 0.7%, closing at 37,499 after showing little movement in the previous session. The broader Topix index also saw a slight decrease of nearly 0.1%, marking its second day of modest trading. Sentiment was shaken by a significant drop in U.S. futures following Moody's downgrade of the U.S. credit outlook, which stirred concerns about a potential exodus from U.S. assets. Concurrently, the White House continued to apply trade pressure, with Treasury Secretary Bessent stating that partners could face maximum tariffs if negotiations were not conducted "in good faith." Investors remained wary and closely monitored U.S.-Japan trade discussions, with Tokyo seeking to conclude an agreement by June. The market was also absorbing Chinese economic reports indicating a slowdown in industrial production and retail sales for April. Notably, in individual stock movements, Fast Retailing experienced a 1.1% decline, exerting the most substantial downward pressure on the Nikkei. Meanwhile, chipmakers Advantest and Tokyo Electron saw decreases of 1.4% and 1.2%, respectively. On the positive side, pharmaceutical company Daiichi Sankyo jumped 6.6%, leading the gainers and significantly boosting the index.