FX.co ★ Japanese Shares Rise on US-China Trade Optimism

The Nikkei 225 Index advanced by 0.2% to approach 37,600, while the Topix index increased by 0.4% to reach 2,744 on Monday. Japanese stocks reached six-week highs following reports over the weekend from Switzerland that the United States and China made "substantial progress" in trade talks. The US emphasized its commitment to decreasing the trade deficit, and Chinese officials acknowledged achieving an "important consensus." Nonetheless, US Commerce Secretary Howard Lutnick pointed out that the existing 10% baseline tariff on other nations is anticipated to remain "for the foreseeable future." Market participants are also attentive to the ongoing trade discussions between the US and Japan, with Japan aspiring to finalize an agreement by June. Leading the market gains were key index components, including Kawasaki Heavy, which rose by 3.9%, Disco Corp by 2.5%, Fujikura by 1.8%, Advantest by 4%, and IHI Corp by 1%.