The Nikkei 225 Index fell 0.2% to below 39,200 on Wednesday, ending a two-day rally as investors reacted to disappointing economic data. Core machinery orders in Japan, a key indicator of capital spending, unexpectedly dropped in December. Additionally, Japan reported a larger-than-expected trade deficit for January, with import growth outpacing exports. Investors also continued to monitor developments in global trade, as US President Donald Trump plans to impose reciprocal tariffs on countries that tax US imports by April. In corporate news, Honda indicated its willingness to resume merger talks with Nissan, contingent on the resignation of Nissan CEO Makoto Uchida. Notable losses were seen among index heavyweights, including Disco Corp (-1.4%), SoftBank Group (-1.7%), and Fast Retailing (-1.3%).

Source: Trading Economi