FX.co ★ Japan Stocks Drop 0.6% at Finish

On Wednesday, the Nikkei 225 index experienced a decline of 214 points, or 0.6%, concluding the day at 37,315. This decrease followed minor advances noted in the previous trading session. In parallel, the wider Topix index retreated by 0.3%, relinquishing earlier gains. These downward movements were prompted by newly released trade data revealing that Japan's export growth reached its lowest rate in seven months during April. This slowdown was attributed to heightened U.S. tariffs beginning to exert pressure. Notably, exports to the United States saw their first decline in four months, primarily due to diminished demand for automobiles, steel, and ships. The Nikkei newspaper reported that chief trade negotiator Ryosei Akazawa is scheduled to travel to the United States on Friday for a third round of discussions, with the aim of advocating for the complete removal, rather than mere reduction, of U.S. tariffs. Concurrently, U.S. futures experienced a significant dip amid growing skepticism regarding the sustainability of the latest rally on Wall Street. Several major stocks suffered losses, including Sopo Holdings (-6.6%), Tokio Marine Holdings (-3.2%), Advantest Corp. (-2.5%), and Sony Group Corp. (-1.8%). Conversely, Toyota Motor Corporation saw a slight increase of 0.1% after unveiling a new software system in its updated RAV4 model.