The Japanese Yen (JPY) hit a fresh four-month low against the U.S. Dollar (USD) on Friday and remains under pressure amid dovish signals from the Bank of Japan (BoJ). While the BoJ revised its inflation outlook higher and hinted at possible rate hikes later this year, Governor Kazuo Ueda emphasized a cautious approach, especially in light of the U.S.-Japan trade deal and its tariff implications. Ongoing political uncertainty and fiscal concerns in Japan further weaken the JPY. Meanwhile, global risk sentiment soured after President Trump imposed tariffs of up to 41% on key trade partners, slightly supporting safe-havens like the Yen. The USD remains strong after a hawkish Fed stance, though traders await U.S. Nonfarm Payrolls data before making new bets.

Japan’s Nikkei 225 fell 0.4% on Friday, dragged down by chip-related stocks amid renewed concerns over technology investment. Tokyo Electron plunged 17%—its biggest drop in nearly a year—after slashing its profit forecast due to reduced semiconductor spending, especially in China. Advantest also declined 2.2%. The broader Topix rose 0.4%, supported by utility gains. Overnight losses in U.S. tech stocks, including Nvidia, and a drop in the SOX index added pressure. Fresh U.S. tariffs announced by President Trump further dampened sentiment. Socionext and Hitachi fell sharply, down 12% and 8.5% respectively. On the upside, Fuji Electric jumped 14% after raising its earnings outlook, and Japan Tobacco surged 5.8% on a strong profit forecast. 176 Nikkei stocks advanced, while 47 declined.