Japan’s Nikkei Stock Average Ekes out Gain despite Trade Uncertainty; Steelmakers Jump (UPDATE 1)

Reuters

13:27 JST, July 3, 2025 (updated at 17:00 JST)

TOKYO, July 3 (Reuters) – Japan’s Nikkei share gauge eked out a small gain on Thursday even as uncertainty over a trade deal with the United States and the threat of heavy tariffs kept a lid on investor optimism.

Japanese shares were under water most of the session before breaking higher at the close. The Nikkei 225 Index ended 0.1% higher, snapping a two-day decline. The broader Topix also rose 0.1%.

Prolonged trade negotiations with the U.S. have yet to produce a deal, with President Donald Trump recently threatening even higher tariffs on Japan from as soon as next week.

Prime Minister Shigeru Ishiba said on Wednesday he was determined to protect Japan’s national interests, while chief trade negotiator Ryosei Akazawa was reported to be organizing his eighth visit to the U.S. as early as this weekend.

“If the negotiations do not produce results, it will be a major blow to the Japanese economy,” said Nomura strategist Fumika Shimizu.

The Nikkei has taken a breather after surging more than 4.5% last week, largely on the back of gains in artificial intelligence-related companies.

Foreigners bought a net 651.3 billion yen ($4.5 billion) worth of Japanese stocks in the week to June 28, marking their 12th week of buying out of the past 13, data from finance ministry showed.

Investors were also cautious ahead of key employment data in the U.S. on Thursday and a market close on Friday for the Independence Day holiday, said Takamasa Ikeda, portfolio manager at GCI Asset Management.

“Overseas investors may also be taking a wait-and-see approach today,” he said.

There were 130 advancers on the Nikkei index against 92 decliners.

JFE Holdings surged 5.4%, leading an advance among iron and steel makers, which were the biggest gainers among the Tokyo Stock Exchange’s 33 industry sub-indexes.

Chip-sector heavyweight Renesas jumped 4.8%. Tokyo Electron, a maker of semiconductor production equipment, rose 1.8%.

The largest losers by percentage on the Nikkei were NH Foods , down 4.8%, followed by Konami Group, which lost 4.3%, and Muji-brand retailer Ryohin Keikaku, which slid 3.7%.