FX.co ★ Japanese Shares Extend Losses Amid US Tariff Threats

Japanese stocks experienced a decline for the second consecutive session on Monday, hampered by renewing trade tensions that weighed on investor confidence. The Nikkei 225 Index fell by 1.3%, closing at 37,470, while the Topix Index saw a decrease of 0.87%, settling at 2,777. Market pressure intensified following US President Donald Trump's announcement to increase tariffs on steel imports to 50%, starting June 4. This decision particularly impacted Japanese steel manufacturers, with JFE Holdings seeing a 2.3% decrease, Kobe Steel falling by 1.5%, and Nippon Steel dropping 1.6%. The latter's decline was somewhat mitigated by President Trump's favorable remarks regarding its proposed merger with US Steel. The losses were widespread, affecting various sectors, with technology and automotive stocks experiencing significant setbacks. Noteworthy declines included Advantest, down 3.8%, Disco, which fell 2.9%, and Toyota, decreasing by 2.8%. Economically, Japan reported a stronger-than-anticipated increase in capital expenditure during the first quarter, ahead of the anticipated US tariffs.