Nikkei Gains as Japan Opens Door to Arms Exports
Japanese shares ended higher Tuesday after Japan eased decades-old defence export curbs to allow overseas sales of warships, missiles and other weapons, bolstering sentiment around the domestic defence sector.The Nikkei 225 rose 0.9%, or 524.28 points, to close at 59,349.17.Conflicts in Ukraine and the Middle East are stretching U.S. weapons output, opening room for Japan as allies seek alternative suppliers amid uncertainty over Donald Trump's security stance.Prime Minister Sanae Takaichi said closer defense cooperation is needed, as Tokyo scrapped five export categories that had limited overseas sales. Each deal will now be reviewed individually, while core rules on screening, third-party transfers and sales to conflict zones remain, with exceptions possible for national security.On the corporate front, Kasumigaseki Capital (TYO:3498) rose 5% after the company said a Sanriku offshore earthquake caused no damage to assets or operations and had no earnings impact.Rigaku (TYO:268A) surged 22% after agreeing to a capital and business alliance with Onto Innovation, which will acquire a 27% stake to become its largest shareholder.Nissan Motor (TYO:7201) fell 2% despite progress on solid-state EV batteries and outlined plans for AI-driven vehicles and energy solutions.