FX.co ★ Japanese Shares Advance for Second Straight Session

The Nikkei 225 Index increased by 1%, closing at 37,531, while the more comprehensive Topix Index gained 0.6%, reaching 2,752 on Monday. This progress builds on previous session gains, driven by positive market sentiment following US President Donald Trump's decision to postpone the implementation of the proposed 50% tariffs on the European Union. Additionally, a decline in the safe-haven yen eased currency-related pressures on Japanese exporters, further supporting the stock market. Investors remain focused on the Bank of Japan’s policy direction, with a prevailing expectation that the central bank will continue to raise interest rates in an effort to combat ongoing inflation. The rally was predominantly led by industrial and technology stocks, with notable performances from Kawasaki Heavy (up 3.6%), Disco (up 2.5%), Advantest (up 4.2%), and Tokyo Electron (up 2.6%). Nippon Steel also saw a 2.1% increase following speculative approval from Trump regarding the company’s acquisition of US Steel, a deal that has been pending for a lengthy period.