Although Asia-Pacific markets were mixed on Friday, Japan’s benchmark Nikkei 225 index was a beneficiary of a potentially positive shift in President Donald Trump’s trade policies. According to a CNBC report, White House spokesperson Karoline Leavitt downplayed the imminent starting date of the tariffs that have caused investors much consternation.
Previously, Wall Street circled July 8 on their calendars — the date that the so-called Liberation Day tariffs are set to take place after a 90-day pause. Further, per CNBC, July 9 is the deadline for European Union deal to avoid 50% tariffs.
However, based on statements by the White House, more rational heads may prevail. “The deadline is not critical,” said Leavitt. “Perhaps it could be extended, but that’s a decision for the president to make.”
As of late afternoon Japan time, the Nikkei 225 index stood above the 40,000-point level, up 1.2% from the prior session. It’s the first time the index has crossed the aforementioned milestone since Jan. 7 of this year.
Notably, Tokyo’s core consumer price index showed an increase of 3.1% on a year-over-year basis, excluding fresh food and fuel. However, this figure was slower than the 3.6% increase posted in May. It was also lower than the 3.3% gain that economists anticipated.
Still, the Nikkei 225 fared better than South Korea’s Kospi, which slipped 1.2%. Further, Hong Kong’s Hang Seng Index and mainland China’s CSI 300 index were flat amid reports that the nation’s industrial profits slipped sharply in the first five months of the year.
In Australia, the benchmark S&P/ASX 200 started off the Friday session in a choppy manner. However, by late afternoon, the index was down 0.43%.
U.S. investors interested in exposure to Japan’s middle- and large-capitalization companies may consider the iShares MSCI Japan ETF (NYSEARCA:EWJ). The EWJ is one of the most liquid and well-known Japan-focused exchange-traded funds. However, those seeking a better value proposition may consider the iShares MSCI Japan Value ETF (NYSEARCA:EWJV), which includes smaller enterprises that feature lower fundamental valuations.
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