FX.co ★ Japanese Shares Fall on Renewed Tariff Concerns

The Nikkei 225 Index fell by 1.5%, dropping below 38,000, while the more comprehensive Topix Index declined by 0.9% to 2,785 on Friday. This downturn erased gains from the prior session, sparked by revived concerns over U.S. trade policy that unsettled investors. The selloff followed a U.S. appeals court's decision to reinstate President Donald Trump's global tariffs, reversing a previous ruling by a federal court that deemed them unlawful. Compounding the pressure, it was reported that Tokyo's core inflation rate surpassed expectations, heightening speculation that the Bank of Japan might implement additional interest rate hikes. Market observers broadly predict a 25-basis-point increase during the BOJ's meeting in July. The technology sector was hit the hardest, with shares of Disco and Advantest both falling by 4.2%, and Tokyo Electron declining by 3.3%. Significant losses were also observed among major corporations, including Fujikura (-2.5%), Sony Group (-2.4%), and Nintendo (-3%).