FX.co ★ Nikkei 225 Trims Early Gains at Finish

The Nikkei 225 gained 0.1% to close at 37,529 on Tuesday, rebounding from notable losses in the prior session. Investor sentiment was buoyed by Prime Minister Shigeru Ishiba's assertions that Japan remains steadfast in prioritizing national interests during trade discussions, indicating that Tokyo would not hastily conclude a deal with the U.S. ahead of a third round of negotiations planned for this week. Additionally, market gains were bolstered by China's monetary policy easing, with the People's Bank of China (PBoC) cutting lending rates to unprecedented lows, marking the first such reduction in seven months aimed at invigorating the sluggish economy. Despite initial gains, momentum waned as U.S. futures experienced a slight decline following a modest ascent in the S&P 500 on Monday, even as Moody's adjusted the U.S. credit outlook downward. The broader Topix index remained unchanged, marking its third consecutive session of limited movement. In corporate news, Honda saw a 0.8% uptick after unveiling its strategy to curtail over $20 billion in electric vehicle investments through the fiscal year 2030. Mazda surged by 5%, benefiting from a depreciating yen which positively impacted foreign earnings. Conversely, Fujitsu dropped 2.5%, Daiwa House declined 1.5%, and Tokio Marine decreased by 0.9%.