Asian Stocks: Japanese stocks rise 0.3% in early trading as U.S. equivalent tariff rates are lower than expected

Japanese stocks rose in the early market as U.S. President Donald Trump set a moderate reciprocal tariff rate of 25% for Japan, lower than the expected 30% to 35% he mentioned last Wednesday. This spurred investor activity, and the depreciation of the yen also benefited the stock market. The Nikkei average index opened down 45 points but later rose, reaching a peak increase of 228 points at 39,816 points, closing up 123 points or 0.3% at 39,711 points.

In the semiconductor sector, Advantest (6857.JP) and Kioxia (285A.JP) rose by 2.7% and 4.5%, respectively, while Renesas Electronics (6920.JP) and Tokyo Electron (8035.JP) increased by 0.8% and 1.2%. Discus (6146.JP) rose by 0.5%. Fiber optic manufacturer Fujikura (5803.JP) increased by 4.5%. SoftBank (9984.JP) fell by 1.7%. In the automotive sector, Toyota (7203.JP) and Honda (7267.JP) rose by 0.8% and 0.5%, respectively, while Nissan (7201.JP) fell by 2.8%. Tesla battery supplier Panasonic (6752.JP) dropped by 1.6%.

In the heavy industry sector, Mitsubishi Heavy Industries (7011.JP) fell by 0.5%, while Kawasaki Heavy Industries (7012.JP) and IHI (7013.JP) rose by 0.2% and 0.7%. In other stocks, Mitsubishi UFJ Financial Group (8306.JP) rose by 0.2%, Sony (6758.JP) and Fast Retailing (9983.JP) increased by 0.4%, and Hitachi (6501.JP) and IP operator Sanrio (8136.JP) rose by 2.6% and 1.9%. The parent company of Muji, Ryohin Keikaku (7453.JP), fell by 0.4%.

The yen depreciated, with the dollar rising against the yen to 146.13