Japan's Trade Surplus Shrank In June, Couche Tard Abandons Seven & I Bid

Akira Ito
17 Jul, 2025
Tokyo

Stock market indexes in Japan rebounded from morning losses and hovered near three-week lows ahead of the Upper House election. 

The Nikkei 225 Stock Average edged up 0.4%, the Topix gained 0.6%, and investors stayed cautious ahead of the House of Councilors election on Sunday.

Ahead of the election, caution prevailed in Tokyo trading, as the ruling coalition is expected to lose its majority. 

Moreover, investors are worried that the increase in fiscal spending is likely to exacerbate the already high government debt.

 

Japan's Annual Trade Surplus Narrowed in June

Japan's exports declined for the second consecutive month in June, according to the latest data from the Ministry of Finance. 

Exports fell 0.5% from a year ago to 9.2 trillion yen, driven by an 11.4% decline in exports to the U.S. due to the weakness in exports of automobiles, parts, and pharmaceuticals. 

Shipments to China declined 4.7% but rose 3.6% to the European Union and advanced 4.9% to the ASEAN region. 

So far, Japanese exporters have been avoiding a sharp increase in price hikes by discounting exports and absorbing high tariff costs. 

Imports advanced 0.2% to 9.0 trillion yen from 8.8 trillion yen in the previous month, reflecting the impact of stimulus measures announced ahead of Sunday's elections. 

The trade surplus in June narrowed to 153.1 billion yen from 221.3 billion yen a year ago and rebounded from the deficit of 638.6 billion yen in the previous month. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average edged up 0.4% to 39,799.85, and the broader Topix advanced 0.6% to 2,836.13. 

Seven & I Holdings declined 9.2% to ¥2,007.50 after the Canada-based Alimentation Couche-Tard abandoned its $47 billion hostile offer. 

The hostile offer was not welcomed by key shareholders of Seven & I, and the parent of Circle K operator struggled to win support from other shareholders. 

“There has been no sincere or constructive engagement from 7&i that would facilitate the advancement of any proposal, contrary to comments made publicly by 7&i representatives,” Couche-Tard said in a note issued to the Japanese retailer. 

Seven & I rejected the Canadian company's allegations and "disagreed with their numerous mischaracterizations."