FX.co ★ Nikkei Ends Lower as Fast Retailing Slumps

On Friday, Japan's Nikkei 225 Index fell by 0.19%, closing at 39,569, as initial gains were reversed due to a significant sell-off in Fast Retailing shares, which negatively affected the overall market. Fast Retailing, the parent company of Uniqlo, saw its shares plunge by 6.9% following a warning that newly announced US tariffs would have a substantial impact on its US operations later in the year. This prompted the company to announce planned price increases. The cautionary statement came shortly after US President Donald Trump revealed a 25% tariff on Japanese products, effective August 1, intensifying the trade tensions between the US and Japan. In reaction, Prime Minister Shigeru Ishiba emphasized Japan's need to lessen its reliance on the US in key sectors such as defense, food security, and energy, describing the ongoing negotiations as a critical "battle" for national interest. Other prominent stocks that declined included Fujikura, which dropped 3.2%, Mitsubishi Heavy Industries, down 2.0%, and SoftBank Group, which fell by 1.4%.