FX.co ★ Japanese Shares Rally as Trump Lowers Auto Tariffs

On Friday, the Nikkei 225 rose by 1.2%, reaching approximately 43,100, while the Topix index increased by 0.8% to 3,105. This marked the second consecutive day of gains for Japanese stocks, following US President Donald Trump's executive order, which reduced tariffs on Japanese automobiles from 27.5% to 15%. Additionally, the order solidified an agreement for $550 billion of Japanese investments in US projects. The positive sentiment was further buoyed by a strong rally on Wall Street, prompted by weaker US labor data that heightened expectations of an imminent Federal Reserve interest rate reduction. In Japan, data revealed an increase in real wages for August, the first uptick since December, driven by consistent base pay hikes and substantial summer bonuses. Auto manufacturers led the market gains, with Toyota Motor rising by 1.4%, Honda Motor by 1.5%, and Nissan Motor by 2.8%, while significant advances were also noted in technology, industrial, and financial sectors.