"Asian Stocks" Nikkei retraced 256 points in the half-day, Shin-Etsu Chemical fell over 9% after earnings, automotive stocks under pressure, and the yuan exchange rate softened

The market is assessing the progress of trade negotiations, and major stock markets in the Asia-Pacific region were generally soft this morning (25th). The yuan fell 0.3% during the Asian session, while the dollar rose to 147.41 against the yen. The Nikkei index briefly broke through the 42,000 mark yesterday (24th) but failed to stabilize. After a sharp rise for two consecutive days, it opened lower this morning by 65 points, with the decline expanding to 267 points at one point, hitting a low of 41,558 points. It closed near the low at 41,570, down 256 points or 0.6%.

It is reported that Japan will adjust electric vehicle subsidies in response to commitments to the U.S., putting pressure on automotive stocks. Mazda (7261.JP), Subaru (7270.JP), and Nissan (7201.JP) fell between 3.4% and 5.3%, while Toyota (7203.JP) and Honda (7267.JP) dropped by 1.7% to 1.8%. Mitsubishi Motors (7211.JP) fell 7.9%, with its operating profit for the first fiscal quarter down 84.1% year-on-year to 5.638 billion yen.

Global silicon wafer giant Shin-Etsu Chemical (4063.JP) plunged 9.4% in the first half of the day, with its operating profit for the first fiscal quarter ending in June down 12.7% year-on-year to 166.803 billion yen.

Canon (7751.JP) fell 4.1%, with its operating profit for the first half of the year ending in June increasing by 8% year-on-year to 214.308 billion yen.

There was a divergence among heavyweight stocks, with Fast Retailing (9983.JP) slightly down 0.4% and SoftBank (9984.JP) slightly up 0.6%. Tokyo Electric Power (9501.JP) and NTT (9432.JP) rose slightly by 0.1% to 0.2%