Japanese Shares Rise as US, Japan Reaffirm FX Coordination
Japanese shares closed higher on Tuesday after comments from U.S. Treasury Secretary Scott Bessent eased concerns over sharp currency swings, with investors taking comfort from continued coordination between Washington and Tokyo on foreign exchange stability.The Nikkei 225 rose 0.52%, or 324.69 points, to close at 62,742.57.U.S. Treasury Secretary Scott Bessent said on X that the U.S. and Japan reaffirmed their strong economic partnership and maintained close coordination on excessive currency volatility.Japanese Finance Minister Satsuki Katayama said both sides confirmed Japan's response to exchange-rate moves aligned with a bilateral agreement reached last September that permits intervention during periods of sharp market swings. Katayama said the two countries agreed to continue coordinating closely on market developments, including foreign exchange moves.In economic news, Japan's trade deficit narrowed to 224.8 billion yen in the first 20 days of April as export growth outpaced imports.Japan's foreign reserves rose by $8.25 billion in April to $1.383 trillion, supported by gains in securities and gold holdings. Meanwhile, Japan's household spending fell in March despite continued income growth, with real consumption expenditures down 2.9% from a year earlier.On the corporate front, Kawasaki Heavy Industries (TYO:7012) rose 7% after full-year profit beat guidance and the company forecast higher earnings and revenue for fiscal 2027.Mani (TYO:7730) fell 2% after receiving 2.216 billion yen in dividends from three overseas subsidiaries under its global cash management strategy.MediPal Holdings (TYO:7459) gained 1% after launching a 6,650 yen-per-share tender offer to acquire the remaining stake in Paltac (TYO:8283) and make it a wholly owned subsidiary.