Japan Indexes Rebound 2%, Ishiba Reiterates U.S. to Remove Auto Tariffs

Akira Ito
13 May, 2025
Tokyo

Japan's stock market indexes soared following gains in overnight trading on Wall Street after the U.S. and China agreed to de-escalate trade tensions. 

The Nikkei 225 Stock Average soared as much as 2%, and the broader Topix index gained more than 1% after the U.S. and China paused sky-high tariffs for 90 days amid ongoing trade talks. 

The quick agreement hammered out over the weekend in Switzerland raised hopes that the two sides could work out a longer-term agreement and avoid a global economic slowdown. 

Despite the repeated claims by the U.S. president to keep sky-high tariffs on China announced since April 2, the U.S. agreed to lower additional 145% tariffs announced without extracting significant concessions. 

China lowered its retaliatory tariffs of 125% on U.S. imports but kept a base rate of 10% for the next 90 days. 

For now, the trade tensions have deescalated, but the long-term damage is done, and foreign investors' interest in U.S. dollar-denominated assets is waning. 

Prime Minister Shigeru Ishiba emphasized that Japan is not likely to agree on a comprehensive deal with the U.S. unless it includes provisions for the auto sector. 

Ishiba urged Washington for the removal of the 25% tariff on automobile imports. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average advanced 1.8% to 38,337.11, and the broader Topix index gained 1.3% to 2,778.24. 

The U.S. dollar advanced against all major currencies, and the Japanese yen weakened to 147.71. 

Semiconductor equipment makers and retailers led gainers in Tokyo trading. 

Tokyo Electron jumped 4.8% to ¥23,985.0, Advantest Corp. declined 0.8% to ¥7,245.0, and Disco Corp. gained 2.2% to ¥33,650.0. 

Nissan Motor is looking to eliminate as many as 20,000 jobs, or 15% of its global workforce, according to local reports. 

Toyota Motor added 3.9% to ¥2,862.0, Honda Motor added 0.7% to ¥2,862.0, Nissan Motor gained 3.1% to ¥357.20, and Suzuki Motor Corp. advanced 4.5% to ¥1,881.0. 

Suzuki Motor's Indian subsidiary's exports soared 18% to 330,000 in the fiscal year 2024 ending in March. 

But sales in India edged up 0.1% to 1.79 million, accounting for about 55% of its global sales.