FX.co ★ Japanese Shares Track Wall Street Declines

On Tuesday, the Nikkei 225 Index experienced a decline of 1.3%, falling below 42,300, while the broader Topix Index dropped by 0.8% to 3,080. This downturn ended a two-day winning streak for Japanese equities, following similar trends of overnight weakness observed on Wall Street. The decline was largely due to investors securing profits after last week's market rally. Additionally, market sentiment was dampened by escalating trade tensions. Reports indicated that President Donald Trump had threatened to impose "200% tariffs or similar measures" on China if it failed to export rare-earth magnets to the United States. Further reports suggested Trump's intention to enforce "substantial" new tariffs and impose chip restrictions on countries implementing digital tax regimes. Domestically, investors are now focusing on upcoming economic data releases scheduled for later this week, which include figures on industrial production, retail sales, and consumer confidence. Companies such as Sanrio, Lasertec, Tokyo Electric Power, Toyota Motor, and Hotta Marusho saw notable declines in their stock prices, with decreases of 1.7%, 1%, 3%, 1.2%, and 16.9% respectively.