Japan's Nikkei ends nearly flat as market ponders Trump tariff threats

Updates for market close

By Brigid Riley

TOKYO, Feb 10 (Reuters) - Japan's Nikkei share average ended nearly flat on Monday as investors weighed fresh U.S. tariff threats, although a smooth meeting between Japan's prime minister and U.S. President Donald Trump eased some investor concerns.

The Nikkei .N225 closed up just 0.04% at 38,801.17 after a choppy session, while the broader Topix .TOPX shed 0.2% to sit at 2,733.01.

Steelmakers .ISTEl.T narrowed losses to end down 0.2% with Nippon Steel 5401.T sliding 0.5%, after Trump said he would announce new 25% tariffs on Monday on all U.S. steel and aluminium imports.

While a negative for companies that export steel and aluminium to the United States, similar tariffs were implemented during Trump's first time in office, limiting the surprise factor, said Tomo Kinoshita, global market strategist at Invesco Asset Management Japan.

"However, I think caution towards additional tariffs... will continue, and financial markets will likely continue to be sensitive," he said.

Investors were relieved after Japanese Prime Minister Shigeru Ishiba's first White House summit on Friday passed without major incident.

The meeting between Ishiba and Trump came off well, offering some support to Japanese equities, said Hiroshi Namioka, chief strategist at T&D Asset Management.

The United States has yet to announce any tariffs specifically targeting Japan, and while Trump pressed Ishiba to close Japan's annual trade surplus with Washington, he expressed optimism this could be done quickly.

"When looking at the global picture, I believe Japan is in quite a good position," said Namioka.

Japanese markets will be closed on Tuesday for a public holiday.

Among individual shares, earnings produced some of the biggest percentage winners, with Taiyo Yuden 6976.T surging 22.1% after the firm announced an upward revision to its earnings forecast on Friday.

E-commerce and gaming company DeNA 2432.T climbed 23.1%, and Fujikura 5803.T, which makes fibres used by data centres, jumped 7.1%.

Heavyweights Fast Retailing 9983.T and SoftBank Group 9984.T dragged on the Nikkei, declining 1.2% and 1.9%, respectively.