Japan Trade Talks Founder Amid Shifting U.S. Demands and Lack of Consistency

Akira Ito
22 Apr, 2025
Tokyo

Stock market indexes in Tokyo declined for the second consecutive session amid lingering global trade uncertainties and the status of the U.S.-Japan trade talks. 

The Nikkei 225 Stock Average decreased 0.2%, and the broader TOPIX index edged higher 0.1% in choppy trading. 

The yen strengthened to a seven-month high of 140.50 against the U.S. dollar as investors sought safety amid global trade tensions and growing skepticism towards U.S. dollar-denominated assets. 

Attention shifted to the Bank of Japan's policy meeting next week, and the central bank is widely anticipated to hold its short-term rates at 0.5%. 

The central bank is also likely to lower its annual economic growth outlook in light of rising external risks, driven by the U.S.-led tariffs on Japan's export-heavy economy. 

About 40% of listed companies on the Tokyo Stock Exchange are dependent on exports to the U.S. and Europe. 

The lack of progress on U.S.-Japan trade talks is also keeping the market sentiment weak, as investors detest policy uncertainty and lack of clarity on future earnings outlook. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average declined 0.2% to 34,200.14, and the broader TOPIX index increased 0.1% to 2,531.54. 

Export-sensitive companies led the decliners in Tokyo trading as Japan's top trade negotiator, Ryosei Akazawa, returned empty-handed. 

Toyota Motor Corp. decreased 0.9% to ¥2,449.50, Honda Motor declined 0.1% to ¥1,381.50, and Nissan Motor fell 0.2% to ¥313.40. 

Panasonic Holdings advanced 1.2% to ¥1,528.50, Canon Inc. decreased 0.2% to ¥4,148.0, and Fujitsu fell 1% to ¥2,891.0. 

Sumitomo Mitsui Financial Group decreased 0.7% to ¥3,141.0, Mitsubishi UFJ Financial Group fell 1.2% to ¥1,633.0, and Mizuho Financial Group dropped 2% to ¥3,324.0.