TOKYO: Japan’s Nikkei share average ended nearly flat on Monday as investors weighed fresh US tariff threats, although a smooth meeting between Japan’s prime minister and US President Donald Trump eased some investor concerns.
The Nikkei closed up just 0.04% at 38,801.17 after a choppy session, while the broader Topix shed 0.2% to sit at 2,733.01.
Steelmakers narrowed losses to end down 0.2% with Nippon Steel sliding 0.5%, after Trump said he would announce new 25% tariffs on Monday on all US steel and aluminium imports.
While a negative for companies that export steel and aluminium to the United States, similar tariffs were implemented during Trump’s first time in office, limiting the surprise factor, said Tomo Kinoshita, global market strategist at Invesco Asset Management Japan.
“However, I think caution towards additional tariffs... will continue, and financial markets will likely continue to be sensitive,” he said.
Investors were relieved after Japanese Prime Minister Shigeru Ishiba’s first White House summit on Friday passed without major incident.
The meeting between Ishiba and Trump came off well, offering some support to Japanese equities, said Hiroshi Namioka, chief strategist at T&D Asset Management.