FX.co ★ Japanese Shares Fall on Trade Jitters

The Nikkei 225 index fell by 0.6%, dipping below the 40,900 mark on Friday, as the market relinquished the previous session's gains. This decline was primarily driven by renewed trade tensions that have unsettled investors. The situation intensified when U.S. President Donald Trump reiterated the enforcement of a 10% global tariff and introduced reciprocal duties that could reach up to 41% for nations without trade agreements. Such measures have heightened concerns over potential disruptions to supply chains and a deceleration in global economic growth. Japanese stock markets were further influenced by losses in U.S. futures, with Amazon shares notably tumbling in after-hours trading due to underwhelming guidance. Meanwhile, the Bank of Japan maintained its interest rates unchanged on Thursday, while simultaneously elevating its inflation forecast for the current fiscal year. In corporate developments, Tokyo Electron saw its shares plummet by 18% following a downward revision of its full-year profit outlook, attributed to subdued demand from logic chipmakers. Other technology stocks saw declines as well, including Lasertec, which fell by 5.6%; Hitachi, down 8.9%; Disco, which slipped 2.7%; Advantest, decreasing by 2.6%; and SoftBank Group, which dropped by 2.5%.