Japan's Nikkei average futures up 0.6% in early trade

Japan's Nikkei average futures up 0.6% in early trade

Tokyo, June 3, 2025 - The Nikkei 225 average futures rose by 0.6% in early trade on Monday, extending the gains from the previous session. The rally was driven by optimism surrounding ongoing trade talks between the United States and Japan, which are expected to lead to tariff concessions [2].

The Nikkei 225 Index, which tracks the performance of Japan's largest publicly traded companies, jumped 1.03% to close at 34,730, while the broader Topix Index rallied 1.14% to 2,559 on Friday [2]. This uptick follows the Japanese government's agreement with China on procedures to recommence imports of fishery products, reported by Nikkei [1].

The Japanese Economy Minister, Ryosei Akazawa, stated that Trump had designated getting a deal with Japan as a "top priority," which has bolstered market confidence [2]. Additionally, fresh data revealed that Japan's headline inflation eased to a four-month low of 3.6% in March, while core inflation accelerated to 3.2% [2].

Market analysts are closely watching the Bank of Japan's policy meeting scheduled for next week. The central bank is widely expected to maintain interest rates at 0.5% and may revise its growth outlook downward due to potential tariff impacts [2].

In corporate news, Chugai Pharmaceuticals surged 17.5% after the drug it developed with Eli Lilly for weight loss showed similar performance to Ozempic [2]. Meanwhile, Toyota Industries is expected to accept a $42 billion takeover bid from Toyota Motor and other group companies [3].

The Japanese stock market continued to face mixed cues from Wall Street on Friday, with the Nikkei 225 falling below the 37,550 level. The benchmark index is down 430.98 points or 1.14% at 37,534.12 [4].

The manufacturing sector in Japan also showed signs of contraction in May, with a manufacturing PMI score of 49.4, although it was an improvement from April's 48.7 [4]. The U.S. dollar is trading in the lower 143 yen-range on Monday, reflecting the ongoing geopolitical uncertainties.

Crude oil prices eased on Friday due to uncertainty over Trump's tariffs and their potential impact on global growth and fuel demand. West Texas Intermediate crude for July delivery fell by $0.18 or 0.30% to $60.76 a barrel [4].

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L3N3S11GK:0-japan-and-china-agree-on-procedures-for-resuming-seafood-imports-nikkei-reports/
[2] https://tradingeconomics.com/japan/stock-market
[3] https://www.reuters.com/business/autos-transportation/toyota-industries-accept-toyota-groups-42-billion-offer-nikkei-reports-2025-06-02/
[4] https://www.nasdaq.com/articles/japanese-market-significantly-lower-89