Japan's Nippon Steel is sticking to its plan to close the U.S. Steel deal by the end of the year

Japanese shares cut early losses to trade flat on Monday on mixed reaction to local companies' earnings outlook. Bank of Japan's reduction in bond buying weighed on sentiment. Real estate sector lost 3.66% to become the worst performer among the Tokyo Stock Exchange's 33 industry sub-indexes.

Japan's top steelmaker, Nippon Steel, sticks to plan to close U.S. Steel deal by year-end. Company expects to boost output and profits, despite resistance to transaction in the United States. In December, company offered nearly $15 billion to take over iconic U.K. Steel, drawing resistance from President Biden and Donald Trump.

Nippon Steel had been expected to post a net profit of 464.6 billion yen, according to a LSEG poll of analysts. For the year ending in March 2025, Nippon Steel forecast a net profit of 300 billion yen. The company reiterated that it planned to close its $15 billion deal to buy U.S. Steel by the end of this year at the latest.