<h1>Tariff adjustment: uncertainty over import tax changes and trade negotiations heightens market and regulatory risk.</h1> Markets reacted to shifting trade policy signals, notably a reported reduction in a proposed import tax on Japan and ongoing negotiations toward a China trade deal, with uncertainty over extension or adjustment of a tariff ceasefire driving investor risk assessments. Concurrently, Tokyo inflation remained elevated though moderated, leading to expectations of steady central bank rates alongside higher inflation forecasts. These trade and monetary developments, together with major corporate investment moves in artificial intelligence and pronounced sectoral share swings, were the primary drivers of short-term market volatility.