FX.co ★ Japanese Shares Drop for Second Session

On Monday, the Nikkei 225 Index fell by 1.3%, dipping below the 37,500 mark, while the broader Topix Index declined 0.9% to settle at 2,777. This marked the second consecutive session of losses, driven by renewed tariff threats from US President Donald Trump, which unsettled markets. Trump announced plans to increase tariffs on steel imports to 50%, effective from June 4. This development placed significant pressure on Japanese steelmakers, resulting in drops of 1.8% for JFE Holdings and 1.0% for Kobe Steel. Nippon Steel also fell by 0.5%, though it received a slight reprieve due to Trump’s favorable remarks regarding its potential merger with US Steel. Losses permeated multiple key sectors, with notable declines observed in Disco (-2.2%), Mitsubishi UFJ Financial Group (-2.1%), Sanrio (-1.7%), Tokyo Electron (-1.5%), and Advantest (-3.3%). The escalation in trade tensions and the uncertainty surrounding the future of US-Japan economic relations kept investors on edge.