US-Japan tariff negotiations showed signs of progress in the early morning hours, with Trump claiming "big progress" and both sides agreeing to "aim for an early agreement." Prime Minister Ishiba acknowledged talks "won't be easy" but indicated plans to visit the US for direct discussions with Trump "at an appropriate time."

By mid-morning, Taiwan's tech ambitions emerged as a parallel story, with TSMC reporting a 60% profit jump while announcing plans to build an "independent" US chip manufacturing hub capable of producing 30% of its cutting-edge 2-nanometer chips in Arizona. Taiwan's Yageo also escalated its corporate takeover battle with Japan's Minebea, raising its bid for Shibaura Electronics.

Domestic concerns surfaced by afternoon with cabinet disapproval ratings exceeding 50% for the first time, while Mizuho Bank announced support for small businesses struggling with trade uncertainty through unsecured loans.