FX.co ★ Japanese Shares Slip on Rising Trade Tensions

The Nikkei 225 Index experienced a 0.3% decline, dipping below 39,500, while the broader Topix Index decreased by 0.2% to reach 2,817 on Monday. This movement marked a two-week low for the Nikkei 225, as renewed trade tensions negatively impacted market sentiment. This downturn followed U.S. President Donald Trump's announcement of a 30% tariff on imports from the European Union and Mexico, which is scheduled to be implemented on August 1. In reaction, the European Union is intensifying discussions with other impacted nations, such as Canada and Japan, to assess potential coordinated responses. Domestically, Japan's core machinery orders fell by 0.6% month-over-month, totaling ¥913.5 billion in May. Despite being a reduction, this figure indicated an improvement from April's substantial 9.1% decrease and exceeded market expectations of a 1.5% decline. Some major contributors to the index decline included Lasertec, which fell by 2.2%, Sanrio by 4.4%, Mitsubishi UFJ by 1.2%, Tokyo Electron by 1.4%, and SoftBank Group by 1%.