09.09.202510:34 Forex Analysis & Reviews: STOXX 600 rises, Nikkei falls: contrast of world exchanges

European markets steady amid French political shake-up

On Tuesday, European stocks showed resilience as optimism from a series of major mergers and acquisitions helped offset concerns about political instability in France, following the resignation of Prime Minister Francois Bayrou after a no-confidence vote.

STOXX 600 edges up, resources lead gains

By 07:07 GMT, the pan-European STOXX 600 index had inched up 0.1 percent to 552.69 points. The strongest performance came from the basic resources sector, which advanced 1.3 percent.

France awaits new prime minister

France's CAC 40 index rose 0.2 percent at the open. Long-term French bonds remained steady as markets waited for President Emmanuel Macron to announce his candidate for prime minister — the fifth such appointment in less than two years.

Anglo American and Teck strike a deal

Shares of Anglo American jumped 4.7 percent after the mining group confirmed a 50 billion dollar merger agreement with Canada's Teck Resources. The newly formed entity will operate under the name Anglo Teck Plc, creating a heavyweight in the global resources sector.

Italian banks on the rise

In Italy, Monte dei Paschi di Siena gained 3.8 percent after data showed the lender secured 62 percent of Mediobanca's target stake. Mediobanca shares also climbed, adding 3.7 percent.

Nikkei slips after hitting record peak

Japan's stock market ended Tuesday in the red as the Nikkei index, after briefly surpassing the historic 44,000 mark, gave way to profit-taking and pressure from a stronger yen.

From record high to retreat

Earlier in the session, the Nikkei surged 1.24 percent to an unprecedented 44,185.73 points. By the close, however, it had reversed course, finishing down 0.4 percent at 43,459.29 and breaking a three-day winning streak. The broader Topix index also declined by 0.5 percent.

Political backdrop fuels expectations

The rally at the open was driven by optimism over potential fiscal stimulus following the resignation of Prime Minister Shigeru Ishiba, known for his tight budgetary stance. Yet investors shifted to profit-taking later in the day.

Yen strength weighs on exporters

Market sentiment was dampened as the yen appreciated 0.5 percent to 146.82 against the US dollar. A stronger currency typically erodes the earnings outlook for Japanese exporters, curbing investor enthusiasm.

Trade talks with Washington

Japan's chief trade negotiator Ryosei Akazawa said in a statement that US tariffs on Japanese cars are set to be reduced by September 16, easing some of the uncertainty surrounding the deal under discussion since July.

He added, however, that most-favored-nation status was not extended to pharmaceuticals and semiconductors, as those industries were excluded from the executive order signed by US President Donald Trump.

Takeda under pressure

Japan's leading drugmaker, Takeda Pharmaceutical, ended the session down 3 percent, ranking among the market's notable losers.

Citizen shares tumble on Nikkei exit

Citizen Watch stock dropped 5.5 percent, making it one of the weakest performers on the Nikkei. The decline followed Monday's announcement that the company will be removed from the Nikkei 225 index starting in October.

Advantest hits fresh peak

In contrast, Advantest — a major supplier of chip-testing equipment and a key partner for Nvidia — surged 6.5 percent, reaching a new all-time high.

Semiconductor sector gains momentum

The broader chip industry also posted gains. Screen Holdings advanced 2.4 percent, while Tokyo Electron climbed 2 percent, reinforcing the sector's upward trend.