FX.co ★ Japanese Shares Edge Higher on Trade Optimism

On Thursday, the Nikkei 225 advanced by 0.1% to approximately 39,800, ending a two-day decline as positive developments in the trade sector bolstered market confidence. Japanese officials reaffirmed their dedication to achieving a mutually beneficial trade agreement with the United States. However, they did not provide details on potential compromises. Meanwhile, US President Donald Trump increased pressure on Japan, describing the negotiations as "really hard" and warning of potential tariff hikes on Japanese imports to as much as 35%. He cited dissatisfaction with Japan's minimal purchases of US rice and automobiles as reasons for this stance. Adding to the positive market outlook, the United States concluded a trade agreement with Vietnam, reducing the tariff on imports from the country to 20%, down from the 46% imposed in April. Key contributors to the Nikkei's gains included leading technology and electronics companies such as Fujikura (+1.5%), Tokyo Electron (+1%), Advantest (+1.1%), Nintendo (+0.9%), and Socionext (+2.8%).