{"id":66736,"date":"2026-08-18T20:08:10","date_gmt":"2026-08-19T00:08:10","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/nikkei-slumps-despite-robust-machinery-orders-trump-signals-diplomatic-shift-with-north-korea-and-iran\/66736\/"},"modified":"2026-08-18T20:08:10","modified_gmt":"2026-08-19T00:08:10","slug":"nikkei-slumps-despite-robust-machinery-orders-trump-signals-diplomatic-shift-with-north-korea-and-iran","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/nikkei-slumps-despite-robust-machinery-orders-trump-signals-diplomatic-shift-with-north-korea-and-iran\/66736\/","title":{"rendered":"Nikkei Slumps Despite Robust Machinery Orders; Trump Signals Diplomatic Shift with North Korea and Iran"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Japan\u2019s Nikkei 225 fell 2% to 66,113.67<\/strong> despite a significant beat in <strong>core machinery orders<\/strong>, which surged <strong>9.7% month-on-month<\/strong> in June.<\/li>\n<li><strong>Donald Trump<\/strong> is reportedly pushing for a personal meeting with <strong>Kim Jong Un<\/strong> this year while simultaneously ordering a halt to talks with <strong>Iran<\/strong>, signaling a pivot toward &quot;strangling&quot; Tehran via economic pressure.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">Oil prices<\/a> climbed for a fourth session<\/strong>, with <strong>WTI rising above $85<\/strong> and <strong>Brent exceeding $91<\/strong>, as stalled US-Iran negotiations and limited Hormuz traffic heighten supply concerns.<\/li>\n<li><strong>US solar producers<\/strong> are defending a court ruling to overturn a Biden-era tariff &quot;holiday,&quot; a move that could hit importers with <strong>billions of dollars in retroactive duties<\/strong>.<\/li>\n<li><strong>Corporate Japan<\/strong> reported its strongest earnings beat in five years, with <strong>71% of Topix 500 firms<\/strong> exceeding analyst forecasts and profit margins hitting a record <strong>9.3%<\/strong>.<\/li>\n<\/ul>\n<h2>Japanese Markets Face Volatility Despite Strong Data<\/h2>\n<p>The <strong>Nikkei Share Average<\/strong> extended its decline on Wednesday, dropping <strong>2% to 66,113.67<\/strong>. This downward move came despite bullish economic data showing that <strong>Japan\u2019s June core machinery orders<\/strong> jumped <strong>9.7% month-on-month<\/strong>, far exceeding the <strong>7.2% forecast<\/strong> and rebounding from a previous <strong>12.4% contraction<\/strong>. On a year-on-year basis, orders surged <strong>16.9%<\/strong>, crushing the <strong>9.6% estimate<\/strong>.<\/p>\n<p>While the broader index struggled, the underlying corporate outlook remains robust. <strong>71% of Topix 500 companies<\/strong> recently topped analyst forecasts, delivering profits exceeding <strong>\u00a521 trillion<\/strong>. Hitachi Construction Machinery (<a href=\"\/stock\/6305\">6305<\/a>) announced a significant capital move, stating it will repurchase up to <strong>6,420,000 shares<\/strong> for a maximum of <strong>\u00a534 billion<\/strong>.<\/p>\n<h2>Trump Shifts Geopolitical Strategy Toward Asia and Middle East<\/h2>\n<p>Former President <strong>Donald Trump<\/strong> is reportedly seeking a revival of nuclear diplomacy by pushing for an in-person meeting with North Korean leader <strong>Kim Jong Un<\/strong> during his November Asia trip. To facilitate this, Trump has ordered a reduction in <strong>US-South Korea military exercises<\/strong>. Analysts suggest a successful summit could reduce regional geopolitical risks, though North Korea&#39;s expanded arsenal remains a major hurdle.<\/p>\n<p>In contrast, the administration&#39;s stance on <strong>Iran<\/strong> has hardened significantly. Trump has ordered top envoys to <strong>halt all talks<\/strong>, moving away from immediate confrontation toward a long-term strategy to <strong>&quot;strangle&quot; Tehran<\/strong> through sustained economic and military pressure. This shift has contributed to a fourth day of gains for crude oil, as <strong>WTI<\/strong> and <strong>Brent<\/strong> prices remain elevated amid the diplomatic deadlock.<\/p>\n<h2>Trade Tensions Rise Over Solar and Auto Sectors<\/h2>\n<p>The US solar industry is bracing for a potential financial shock as domestic producers defend a court ruling to overturn the <strong>Biden-era tariff &quot;holiday&quot;<\/strong> on solar components. If the ruling stands, importers could face <strong>billions of dollars in retroactive duties<\/strong>. Proponents of the ruling argue it is necessary to protect Congressional tariff authority and prevent the undermining of domestic manufacturing.<\/p>\n<p>Simultaneously, trade frictions are mounting between the <strong>US and Canada<\/strong>. The auto sector remains a primary sticking point, with Canada seeking relief from existing <strong>auto and steel tariffs<\/strong>. The Trump administration is reportedly demanding that Canada drop retaliatory measures and provide greater market access for <strong>US dairy producers<\/strong>, raising the risk of a new tariff escalation that could disrupt North American supply chains.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Japan\u2019s Nikkei 225 fell 2% to 66,113.67 despite a significant beat in core machinery orders, which surged 9.7% 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