(Summary) Due to uncertainties such as tariffs, the Nikkei average fell by 110 yen | Market Overview | Moneyクリ Monex Securities' investment information and media useful for money.

Tokyo Market Summary

1. Overview

Last weekend, the U.S. market experienced a sluggish trend due to concerns over the tariff policies of the U.S. administration, leading the Nikkei average to open down 153 points at 39,416. After the opening, the sluggish trend continued, with the Nikkei average reaching a low of 398,288, down 280 points at 10:15. It then recovered slightly, closing down 99 points at 39,469.

As the afternoon session began, the decline gradually narrowed, and around 1:00 PM, it turned upward. In the middle of the session, it fluctuated around last week's closing price of 39,569 yen, but towards the end of the session, it turned downward again, ultimately closing 110 yen lower at 39,459 yen.

In the emerging market, the Tokyo Stock Exchange Growth 250 Index continued to decline, down 0.1%.

2. Individual securities, etc.

Ryohin Keikaku (7453) fell 0.9% to 6,920 yen, marking a fourth consecutive decline. On the 11th, it was announced that the current net profit forecast for the fiscal year ending August 2025 was revised upward by 1.5 billion yen from the previous estimate, projecting a 13.1% increase to 47 billion yen compared to the previous fiscal year, in addition to the announcement of a stock split of 1 share into 2 shares. Initially, this news was met with buying interest, but gradually selling became dominant as the market viewed it as an overreaction to the news.

Nissan Motor Co., Ltd. (7201) rose 3.6% to 318.9 yen, continuing its upward trend. The Nikkei reported that "the company has begun discussions to supply cars to Honda Motor Co., Ltd. (7267) in the United States," leading to buying interest as there are expectations for improved profitability by utilizing Nissan's U.S. factories, which had been underperforming due to sluggish sales.

IHI (7013) rebounded by 3.6% to 15,035 yen. It is reported that a senior official from the U.S. Department of Defense urged Japanese defense officials to clarify their roles in the event of a military conflict between the U.S. and China over Taiwan. Additionally, it has been conveyed that the U.S. side has reiterated its request for Japan to increase its defense spending, leading to increased buying in defense-related stocks.

Tama Home (1419) rose 6.1% to 3,640 yen, marking its fourth consecutive increase. On the 11th, it was announced that the net profit for the fiscal year ending May 2026 is expected to be 6 billion yen, 4.1 times that of the previous period, which was well received amid ongoing performance challenges.

Shimano (7309) fell 2.2% to 20,100 yen, marking a decline for the first time in three days. This drop was influenced by U.S. President Trump announcing on the 12th that he would impose a 30% tariff on the European Union (EU) starting August 1, raising concerns about an economic slowdown in the EU and stagnation in trade, leading to selling pressure on the company, which is linked to European stocks.

VIEW POINT: A Perspective Towards Tomorrow

Concerns over the tariff policies of the U.S. administration have cooled market sentiment, leading to a continued decline in the Nikkei average. In Japan, with the House of Councillors election approaching this week, the progress of tariff negotiations is seen as limited, and there is a lack of macroeconomic buying material.

Attention is focused on the movements of the US market tonight in anticipation of tomorrow. The announcement that the US will impose a 30% tariff on the EU and Mexico could lead to a weak development in the US market, and caution is warranted on this point.

(Monex Securities Financial Intelligence Department Keita Yamaguchi)