Japan's Producer Price Inflation Slowed to 8-Monh Low, Tokyo Stocks Advanced On Trade T

Akira Ito
11 Jun, 2025
Tokyo

Stock market indexes in Tokyo edged slightly higher, and investors reviewed the latest update on producer price inflation and announcements from U.S.-China trade negotiators. 

The Nikkei 225 Stock Average increased 0.5%, and the broader Topix edged up a fraction as investors reviewed the framework agreement struck between the U.S. and China. 

Despite the positive tone of the announcements from the Trump administration and Chinese negotiators, the lack of details and concrete plans to implement trade procedures kept investors guessing. 

U.S. Commerce Secretary Howard Lutnick said to reporters in London that both sides have agreed to ease export controls on goods and technologies that are deemed critical. 

China and the U.S. are facing deep structural issues, as two trade and military rivals look for an edge over the other in international trade and global diplomacy. 

Chinese companies have reduced their dependence on the U.S. over the last six years, with direct exports falling to less than 14% from as high as 19% only a decade ago. 

Moreover, U.S. farm exports to China are increasingly facing competition from exports from Brazil, Argentina, and Peru. 

Closer to home on the economic front, Japan's producer price inflation eased in May and was positive for the 51st consecutive month, the Bank of Japan said in a report Wednesday.

The producer price index advanced 3.2% in May, slower than the marginally revised 4.1% in April. 

The sharp slowdown in petroleum costs to 0.6% from a rise of 6.3% was offset by the sustained increase in production machinery prices by 2.6% compared to 2.8% in the previous month, respectively. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average added 0.5% to 38,390.77, and the broader Topix index increased 0.1% to 2,787.54.

Tokyo Electron jumped 3.8% to ¥24,645.0, Advantest Corp. added 0.5% to ¥8,349.0, and Disco Corp. increased 4.2% to ¥34,500.0. 

Automakers advanced following the U.S.-China trade framework announcements, and investors overlooked the lack of progress in trade talks between the U.S. and China. 

Toyota Motor Corp. added 0.2% to ¥2,662.0, Honda Motor Co. Ltd. gained 0.8% to ¥1,411.0, and Nissan Motor increased 2.6% to ¥361.60.