FX.co ★ Japanese Shares Struggle for Direction

On Wednesday, the Nikkei 225 Index experienced a modest rise of 0.1%, reaching approximately 39,716, while the broader Topix Index saw a decline of 0.4%, settling at 2,815. This divergent performance of Japanese equities reflects investor reactions to recent trade developments. In a notable announcement, US President Donald Trump revealed a preliminary trade agreement with Indonesia, imposing a 19% tariff on Indonesian exports to the United States. Domestically, July data indicated a slight improvement in sentiment among Japanese manufacturers, primarily driven by a resurgence in the semiconductor sector, despite ongoing concerns regarding US trade tariffs. Technology stocks showed an uptrend, buoyed by Nvidia's rally the previous night, with positive movements from companies like Disco, which rose by 0.4%, Lasertec by 0.6%, and Tokyo Electron by 1%. Conversely, financial and consumer stocks mostly stumbled, with Mitsubishi UFJ declining by 1.2% and Fast Retailing by 1.3%.