Tokyo Stocks Rise as Yen Weakens Following US-Japan Tariff Talks

The Japanese yen experienced notable fluctuations as Japan and the United States commenced high-profile trade and tariff talks in Washington, with currency issues at the center of market speculation. Japan's chief trade negotiator, Ryosei Akazawa, met with U.S. Treasury Secretary Scott Bessent, amid expectations that the yen’s persistent weakness would be discussed. The yen initially rallied to its strongest level since September, fueled by conjecture over possible U.S. pressure to address currency imbalances. However, Akazawa later clarified that exchange rates were not discussed during the initial talks, easing immediate concerns and boosting Japanese exporter stocks as the yen weakened. Analysts remain watchful, forecasting that future discussions could still address foreign exchange matters, which may add volatility to the yen and impact global equity markets. The overall market response has been shaped by a delicate balance between easing trade tensions and ongoing uncertainty over currency policy.