FX.co ★ Japanese Shares Advance for Second Straight Session

The Nikkei 225 Index climbed by 0.5% to approximately 37,350, while the more comprehensive Topix Index increased by 0.3% to reach 2,744 on Monday. This rise extended the positive momentum from the previous session, fueled by the positive market sentiment following US President Donald Trump's decision to defer imposing 50% tariffs on the European Union. Additionally, the depreciation of the yen, a traditional safe haven, alleviated currency pressures on Japanese exporters, providing further support to the market. Investors also kept a close watch on the Bank of Japan’s policy direction, with a growing anticipation that the central bank may elevate interest rates to counter sustained inflation. The rally was predominantly driven by gains in industrial and technology sectors, with notable performances from Kawasaki Heavy, which rose by 2.2%, Nippon Steel by 4.9%, IHI Corp by 0.7%, Disco by 1.1%, Advantest by 1.5%, and Tokyo Electron by 1.7%.