FX.co ★ Japanese Shares Rise on Robust Trade Data

The Nikkei 225 Index rose 0.2% on Wednesday to trade above 69,500, holding near record highs as stronger-than-expected trade data bolstered confidence in Japan’s corporate outlook. Official figures showed that exports surged 17% year-on-year in May, the fastest pace of growth since November 2022, driven by robust demand for automobiles and semiconductors.

The data came on the heels of the Bank of Japan’s decision on Tuesday to raise its policy rate by 25 basis points to 1%, in a bid to rein in inflationary pressures and support the yen. Market participants also looked ahead to the anticipated signing of a US–Iran peace agreement on Friday, which is expected to reopen the Strait of Hormuz and help normalize oil shipments from the Middle East.

At the stock level, notable gains were seen in Lasertec (7.1%), Tokyo Electron (1.3%), Advantest (1.9%), Disco Corp (1.7%), and Mitsubishi UFJ (1.2%).