Nikkei 225 Recovers Part of Losses as Japan's Trade Deficit Widens

what happened

Japan's Nikkei 225 rose 629.31 points, or 0.98%, to 64,704.73 on Wednesday, according to TradingView, recovering part of the previous two sessions' declines. Exporters, banks and chip equipment makers led the gains, while carmakers traded lower.

Japan's merchandise trade gap widened to 536.6 billion yen in September, far larger than the 181.0 billion yen shortfall analysts had expected. Exports climbed 16.7% from a year earlier to 10.972 trillion yen, below the forecast of 20.1%. Imports rose 18.9% to 11.508 trillion yen.

In New York, the Dow gained 1% to 52,495.88, posting its best close in more than a month, while the S&P 500 added 0.3% and the Nasdaq slipped slightly. European indexes finished in negative territory. Oil slid after mediation efforts by Qatar and Pakistan to end the US-Iran conflict were reported; November WTI fell 1.82% to $101.84 a barrel.

why it matters

For traders, the picture is mixed: a firmer Asian equity market and a wider trade gap sit alongside cheaper crude. Lower energy prices on hopes for talks ease inflation pressure on fuel importers such as Japan, though the outcome of diplomacy remains uncertain. The dollar is holding near 158 yen.

market impact

Japanese stocks and USD/JPY: exporter and bank gains support the Nikkei; softer oil eases energy cost pressure

instruments