Nikkei 225 hits year's intraday high
Japan's benchmark stock index surged well above the 40,000 level on Monday, hitting an intraday high for the year. The momentum carried over from a Friday rally on Wall Street driven by comments from the US Treasury Secretary. Scott Bessent suggested Washington would seal tariff deals with trading partners by September 1.
The Nikkei 225 briefly gained 700 points, or 1.7 percent, from Friday's close, which was the highest closing figure of the year.
Investors placed buy orders on a wide range of shares soon after opening. The index is set to extend its winning streak to five trading days.
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Japan Times
an hour ago
- Japan Times
Japan-U.S. trade negotiations deadlocked after months of fruitless talks
Trade negotiations between Japan and the United States remain at an impasse despite months of dialogue and earlier suggestions by Japan that progress was being achieved, with some analysts forecasting a breakthrough only after duties hit the U.S. economy in the fall and force a settlement. Central to the stalemate are tariffs on automobiles. Japan wants them lowered, while the United States has said that the 25% additional duty put into place by the administration of U.S. President Donald Trump is not up for discussion. It insists that the main subject of talks now are "reciprocal" tariffs set to kick in on July 9, which, if implemented, would take tariffs on most Japanese goods to 24% from the current 10%. In comments Sunday in the United States, Trump indicated that the United States is dissatisfied with the state of trade with Japan and suggested that there is little interest in retreating from the initial negotiating position. 'I'm going to send letters. That's the end of the trade deal,' Trump said in a Fox News interview. 'I could send one to Japan. 'Dear Mr. Japan, here's the story: You are going to pay a 25% tariff on your cars.' They won't take our cars, and yet we take millions and millions of their cars into the United States. It's not fair. And I explain that to Japan, and they understand it.' Ryosei Akazawa, Japan's chief tariff negotiator, declined to comment on Trump's remarks after returning to Tokyo on Monday afternoon. 'Continuing to face a 25% tariff in this area would cause serious harm and economic losses,' he said in discussing the duties on autos, while dodging questions about Japan's current demands. Trump's remarks were broadcast while Akazawa was in Washington for the seventh time since mid-April to discuss tariffs. He was engaged in the first high-level talks between the two countries since Prime Minister Shigeru Ishiba and Trump met in Canada earlier this month and failed to achieve any tangible results during a 30-minute discussion. Akazawa met with Commerce Secretary Howard Luntick for about 65 minutes on Friday and followed up with two 15-to-20-minute phone calls a day later. A statement by the Japanese government summarizing the discussions did not mention any concrete progress achieved during the talks. Takahide Kiuchi, executive economist at Nomura Research Institute, wrote in a Monday report that public dissatisfaction with the Trump administration is likely to grow if tariffs push up prices, and the United States might be compelled to lower the tariffs as early as this fall. 'Should that happen, ongoing bilateral tariff negotiations — including those with Japan — may effectively dissolve on their own,' Kiuchi wrote, while warning that even if the tariffs were to be lowered, a weaker dollar policy might come next as a new source of pressure for Japan. So far, prices have been relatively stable in the United States, with key inflation indicators running in the 2% range and at or near multiyear lows. 'I think we'll start seeing worse numbers from June onward,' said Masamichi Adachi, UBS Securities' chief economist for Japan. 'I think it's clear the U.S. economy is heading downward. I don't know how bad it will get or how long the weakness will last, but the direction is unmistakable — things are turning worse.' But he is skeptical about the assessment that weakness in the United States will force Trump's hand in tariff negotiations. 'That's only going to happen after the economy worsens or stock prices crash,' Adachi said. 'So I don't share the current optimism in the market — the idea that if we just wait, the U.S. will lower tariffs on its own. I really don't think it's that simple.' Japan is already feeling the effects of U.S. tariffs. Exports to the U.S. declined by 11% year-on-year in May, with automobile exports down 24.7%. In terms of volume, the decline was only 3.9%, indicating that Japanese automakers may have reduced vehicle prices to mitigate the tariff effects. 'The drag on the Japanese economy from the tariff shock will be inevitable not only through the direct impact of lower export volume, but also the indirect burden of lower profits due to lower export prices,' Adachi wrote in a report published on June 20. 'For Japan to get the U.S. to lower auto tariffs, it would need to have something that America really wants — like China's rare metals, for example. But Japan doesn't have that kind of bargaining chip,' Adachi said. 'The best-case scenario right now would be to keep the reciprocal tariff at 10% and avoid it going back up to 24%. That alone would be a win.' Treasury Secretary Scott Bessent, who was appointed to lead negotiations with Japan, has signaled that extensions to the July 9 deadline to Sept. 1 might be possible.
NHK
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Canada to scrap digital services tax to advance tariff talks with US
Canada says it will scrap the digital services tax as a way to advance tariff negotiations with the United States. The Canadian government announced on Sunday that it will abolish the tax introduced last year, and that the first tax collection scheduled for Monday will be halted. The government also said it will submit draft legislation aimed at scrapping the tax to parliament. US President Donald Trump has criticized the tax for targeting US tech giants. On Friday, he expressed his intention of calling off tariff negotiations with Canada. Canada says Prime Minister Mark Carney and Trump have agreed to resume negotiations with "a view towards agreeing on a deal by July 21." Carney said in a statement that Sunday's announcement will support a resumption of negotiations.
NHK
2 hours ago
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China's factory activity ticks up but remains below key level
China's factory activity picked up slightly in June. But its key gauge remained below the boom-or-bust line for a third month in a row, as businesses are still concerned about the future of trade talks with the US. The National Bureau of Statistics says the manufacturing Purchasing Managers' Index was 49.7 for the month. That's up 0.2 from May, but still below the 50-point threshold. Figures above the mark indicate expansion, while those below suggest contraction. The Bureau surveyed 3,200 manufacturers. The index for large businesses exceeded the threshold, at 51.2. But activity at medium- and small-sized firms remained sluggish. Meanwhile, the index for the non-manufacturing sector, including service providers, improved by 0.2 points to 50.5. Washington and Beijing continue to hold tariff negotiations after slashing additional levies on each other. Concerns were somewhat eased following a round of talks in London, but this was not enough to reverse the cautious outlook.
