Tokyo Stocks Edged Higher as Japan Holds Firm Against U.S. Tariff Pressure

Akira Ito
08 Jul, 2025
Tokyo

Stocks in Japan advanced after the U.S. agreed to delay the previously announced high tariffs, easing market anxieties. 

The Nikkei 225 Stock Average gained 0.2%, and the broader Topix inched higher 0.1%, as investors welcomed the extension of the so-called reciprocal tariff deadline by three weeks to August 1.

In a separate announcement, Trump alerted Japan and South Korea to the possible 25% tariff, lower than the previously announced 35% rate, if trade negotiations fail by the end of July.

Japan is reluctant to agree to any level of tariff, and Japanese negotiators have held a firm stance against the tariff, despite the shrill rhetoric from the White House.

The constant shift in the U.S. trade policy and the lack of clarity and stability on tariffs have kept exporters on the defensive and searching for other markets in South America, India, and the ASEAN region. 

On the economic front, Japan's current account surplus surpassed market expectations in May, providing additional support to market sentiment. 

The current account surplus expanded to 3.44 trillion yen from 2.95 trillion yen, driven by the swinging of the service account to a surplus of 201.1 billion yen from a deficit of 51.6 billion a year ago, respectively. 

For the fiscal year 2024, the current account surplus widened to a record high of 30.4 trillion yen from 26.2 trillion yen a year ago, the Ministry of Finance reported Tuesday. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average edged up 0.2% to 39,672.14, and the broader Topix inched higher 0.1% to 2,814.78. 

Electrical machinery and equipment makers and artificial intelligence-linked stocks led gainers in Tokyo trading. 

Fujikura Ltd. advanced 4.3% to 2,814.78, Furukawa Electric Co. Ltd. jumped 6.2% to ¥7,398.0, Advantest Corp. gained 2.4% to ¥10,945.0, and Tokyo Electron Ltd. edged up 1% to ¥27,395.0. 

Marubeni Corp. inched higher 0.6% to ¥2,976.50, Itochu Corp. edged up 0.3% to ¥7,597.0, Mitsui & Company gained 0.5% to ¥3,011.0, and Sumitomo Corp. advanced 0.4% to ¥3,691.0.