Nikkei rises 0.7% on tariff flexibility optimism

Japan's Nikkei share average climbed 0.7% on Wednesday, closing at 38,027.29. This rise came as investors were optimistic about possible changes to U.S. tariffs. Shares related to semiconductors and the weaker yen contributed to market growth. The Nikkei reached a one-month high earlier in the day at 38,220.69. The broader Topix index also saw gains, finishing up 0.6% at 2,812.89. Investor confidence grew after U.S. President Donald Trump hinted that not all proposed tariffs would be applied immediately and some countries might receive exemptions. Wall Street's positive performance added to the upbeat mood among Japanese investors. All three major U.S. stock indexes closed higher, even if only slightly. Analysts believe that the U.S. administration will adopt a more cautious approach to tariffs to avoid economic downturns. In the semiconductor sector, Tokyo Electron's shares rose 1.6%, and SoftBank Group gained 1.4%. The yen’s exchange rate at 150.57 per U.S. dollar benefited exporters. Toyota Motor saw a slight rise of 0.2%, while Honda Motor's losses were reduced to 0.7%. Notable gainers included Nintendo, which surged 5.3%, and Sony Group, which increased by 2.3%. Fast Retailing, the parent company of Uniqlo, climbed 1.5%. Overall, the market's direction is closely linked to future U.S. tariff decisions.