Nikkei Slips as Japan`s $550 Billion U.S. Deal Leaves Yen Unmoved

Published on 10/01/2025 at 02:53 am EDT
(MT Newswires) - Japanese shares closed lower on Wednesday after top trade negotiator Ryosei Akazawa said a $550 billion investment package tied to Tokyo's tariff deal with Washington will proceed without affecting currency markets.
The Nikkei 225 fell 0.85%, or 381.78 points, to end at 44,550.85.
The deal, signed last month, covers Japanese investments in chips, metals, pharmaceuticals, energy and shipbuilding to be made by January 2029. Akazawa said the package will include equity, loans and guarantees from JBIC and NEXI , with the government able to tap foreign reserves if needed.
He added that earlier comments suggesting equity would make up only 1-2% of the total were based on past trends, and Japan will decide the actual ratio when investments begin.
In economic news, Japan's factory activity contracted more sharply in September, with the S&P Global PMI falling to 48.5 from 49.7 in August, the steepest decline since March.
Output shrank at the fastest pace in six months as new orders dropped both at home and abroad, while job growth slowed and business confidence hit a five-month low.
In contrast, the Bank of Japan's Tankan survey showed sentiment among large manufacturers improved by one point to 14 in the third quarter, led by shipbuilding, machinery and heavy equipment. Big firms across all industries plan to boost capital spending by 12.5% this fiscal year despite forecasting a 4.7% profit drop.
On the corporate front, Kyorin Pharmaceutical , which ended 1.7% lower, signed an exclusive license with U.S.-based Hinge Bio for autoimmune drug HB2198 in Japan, with $10 million upfront, up to $95 million in milestones for SLE, and royalties, according to a Wednesday filing.
StemRIM , which ended 0.3% lower, said a U.S. patent for its psoriasis drug candidate Redasemtide will soon be registered, expanding its regenerative therapy pipeline in a $6.7 billion market.
Marubeni , which ended 1.2% lower, launched Marubeni Power Trading, a 50-50 venture with SmartestEnergy, to address rising demand from data centres, chip plants and renewables in Japan's volatile electricity market.

Sumber : MT Newswires