Financial Insights That Matter
(Bloomberg) — Japanese stocks rebounded after a call between Prime Minister Shigeru Ishiba and US President Donald Trump spurred hopes of a tariff deal.
Most Read from Bloomberg
The broader Topix rose as much as 7.2% to 2,452.78 in morning Tokyo trade while the Nikkei 225 Stock Average gained as much as 6.8% to 33,257.16. The moves in both gauges were the biggest intraday increase since August.
The jump came amid optimism that Japan might strike a trade deal with the US to avert a 24% levy as the Wednesday deadline approached. Both stock indexes have fallen over 7% since the tariffs were announced on April 2.
“There was a feeling that the market was oversold yesterday, and investors were looking for a catalyst to buy back in,” said Kazuhiro Sasaki, head of research at Phillip Securities Japan.
Ishiba’s call with Trump, and US Treasury Secretary Scott Bessent’s subsequent comments that Japan may be a priority in tariff negotiations, have been taken as a sign that “talks are moving in the right direction,” said Sasaki. This is giving investors some security and fueling a rebound in shares.
Exporters like electronics makers contributed most to the Topix’s rise, with the move boosted by the yen’s recent weakness against the dollar. The Japanese currency declined in the previous two sessions and was 0.3% stronger at 147.47 per dollar on Tuesday. Hitachi Ltd.’s shares rose as much as 15%.
Read: US-Japan Trade Talks Set to Kick Off After Trump-Ishiba Call
Banking stocks also climbed, with the Topix’s banking subindex rising by more than 11%. Mitsubishi UFJ Financial Group Inc. gained as much as 13%, the most since Aug. 6, when the market rebounded from a rout triggered by an unforeseen Bank of Japan rate hike. Mizuho Financial Group Inc. and Sumitomo Mitsui Financial Group Inc. also rose over 11% Tuesday.
Japan’s benchmark 10-year bond yield climbed around 11 basis points to 1.215% as the risk-off mood eased on hopes negotiations might soften the economic blow of tariffs.
–With assistance from Aya Wagatsuma.
Most Read from Bloomberg Businessweek
©2025 Bloomberg L.P.
#1a73e8;">Boost Your Financial Knowledge and Achieve Stability
Discover a growing online community dedicated to delivering financial news, tips, and strategies designed to help you manage money effectively, save smarter, and grow your investments with confidence.
#1a73e8;">Top Financial Tips for Saving and Investing
- Personal Finance Management: Master the art of budgeting, expense tracking, and building a strong financial foundation.
- Investment Opportunities: Stay updated on market trends, learn about stocks, and explore secure ways to grow your wealth.
- Expert Money-Saving Advice: Access proven techniques to reduce expenses and maximize your financial potential.