FX.co ★ Japanese Shares Fall as Trump Renews Tariff Threats

The Nikkei 225 Index declined by 0.6% to fall below 38,200, while the broader Topix Index decreased by 0.3% to 2,780 on Thursday. This halt in the Japanese stock markets' four-day winning streak came after US President Donald Trump announced plans to impose unilateral tariffs within two weeks as a strategy to coerce countries into trade agreements. Notably, Trump had made a similar statement on May 16 without actual implementation of the tariffs. Additionally, US Treasury Secretary Scott Bessent indicated the possibility of extending the 90-day suspension of reciprocal tariffs for nations demonstrating "good faith" in trade negotiations. In Japan, recent data revealed a further decline in business sentiment among large manufacturers during the second quarter, largely due to ongoing tariff uncertainties affecting the export-reliant economy. Among the significant losers were Tokyo Electron, dropping by 0.7%, Hitachi by 1.7%, Toyota Motor by 1.1%, Fast Retailing by 1.8%, and Keyence by 1.3%.