Nikkei225:Adjustments&Subsidies to Toyota,Nissan,Panasonic

Toyota, Nissan and Panasonic are adjusting their electric vehicle production strategies, reflecting the complex situation in Japan's auto industry. Toyota will reduce its global production of electric vehicles in 2026 to around one million units, down from its original plan of 1.5 million, underscoring the challenges in the transition to greater electrification amid changes in demand and the supply chain.

The Nikkei 225 index, one of the main indicators of the Japanese stock market, closed down 0.62%, influenced by these strategic moves and setbacks in key sectors such as mining, chemicals and precision technology. The Nikkei's volatility increased by 29.67% to 27.05, reflecting investor uncertainty. Looking at the Check Point (POC), it is around 38,520 points. The current range was between 39,450 and 36,650 points, above today's close of 36,422.50. Currently the RSI is at 39-40% so it could happen that on Monday the selling sentiment will continue to move higher at the open if there are no changes over the weekend.

Toyota, Nissan and Panasonic are benefiting from government subsidies of up to US$2.4 billion to boost domestic battery production, with the goal of expanding capacity by 50% to 120 GWh. Nissan has received certification to manufacture lithium iron phosphate batteries with a production plan of 5 GWh by 2028. However, high competitiveness and challenges in electrification continue to generate volatility in the Nikkei, reflecting investors' response to these companies' strategies in an evolving market.

Ion Jauregui - Activtrades Analyst





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