FX.co ★ Japan Stocks Slide to 3-Week Lows

During Thursday morning trading, the Nikkei 225 Index slipped by 0.5% to approximately 39,439, and the broader Topix Index edged down 0.1% to 2,816. This decline occurred as traders remained wary following US President Trump's announcement of a proposed 25% tariff on Japanese goods. The Nikkei 225 reached its lowest point in over three weeks, after showing little movement the previous day. Investors were also cautious leading up to Japan's Upper House elections scheduled for July 20. Compounding the cautious sentiment was the latest trade data, indicating a narrowing trade surplus in June compared to the previous year. June's trade figures revealed an unexpected drop in exports, while imports increased more than expected. However, the decline was somewhat mitigated by a positive session on Wall Street, as President Trump refuted rumors of plans to dismiss Fed Chair Jerome Powell. Nonetheless, sectors such as energy minerals, non-energy minerals, and technology stocks weighed heavily on the index. Notably, among the biggest decliners were Toray Industries (-3.4%), Tokyo Electron (-3.1%), Minebea Mitsumi (-2.6%), and Nissan Motor (-2.5%).