WNAM REPORT: The nervousness that pervaded Japanese markets on Friday turned briefly to relief after Prime Minister Shigeru Ishiba’s meeting with U.S. President Donald Trump, then back to uncertainty on Monday after the U.S. president flagged tariffs on imports of steel and aluminum.
Trump’s talk of imposing reciprocal tariffs on “everyone” has also provided a stark reminder of the risks that face all of America’s trading partners, including Japan. Yet the amicable atmosphere of their first summit on Friday has the potential to help support Japanese stocks in the medium term, according to investors.
“There had been concerns that Trump may impose tariffs on Japanese cars,” said Daiju Aoki, regional chief investment officer at UBS SuMi Trust Wealth Management in Tokyo. “There were no tariffs. In terms of the yen, they just confirmed that their finance chiefs would be in close touch. And there were no new demands on Japan’s defense spending. It will be a relief for markets.”
