Japan¡¯s stocks plunged after U.S. President Donald Trump slapped the nation with a 24% levy as part of tariffs on trading partners worldwide. A stronger yen also dragged exporter shares lower.
The Topix Index fell 4% to 2,544.41 as of 9:12 a.m. Tokyo time, while the blue-chip Nikkei declined 4.1% to 34,281.76. Contracts traded in Singapore initially spiked, then fell as details of the tariffs rolled out, suggesting the market will face volatility Thursday as investors digest the news.
¡°Overall I think this was on the harder side of expectations,¡± said Nick Twidale, chief analyst at AT Global Markets in Sydney. ¡°Japan and most of Asia took a hit ¡ª I think stocks will take a battering in Asia today, alongside most currencies, although the yen is a different story and may appreciate on its haven status.¡±
Trump also reiterated 25% tariff on autos, which may weigh on carmakers that are already under-performing the broader Topix index this year. The yen extended gains to strengthen 0.8% versus the dollar, while U.S. equity futures sank amid concern the escalating trade war will harm the nation¡¯s economy.
Exporting companies such as electric appliances and the transportation sector were one of the leading losses on the Topix index.
Japan¡¯s benchmark Topix is down more than 8% this year as jitters over tariff concerns damped investor sentiment. The exporter- and tech-heavy Nikkei 225 has been hit harder, tumbling more than 15% from its December peak to enter a correction.
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