Japan's Nikkei closes near 8-month low on US tariff jitters
[TOKYO] Japan’s Nikkei share average closed near an eight-month low on Monday (Mar 31), following sharp losses on Wall Street in the previous session, as investors assessed the risk of imminent US trade tariffs.
The Nikkei fell 4.05 per cent to 35,617.56, its lowest close since August 6, the day after the index posted its biggest single-day rout since the 1987 Black Monday crash.
The index posted its biggest daily decline since September 30.
The broader Topix fell 3.5 per cent to 2,658.73.
“Investors’ sentiment was weakened as there is so much uncertainty ahead of the announcement on reciprocal tariffs,” said Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset Management.
“They were in a risk-off mode and offloaded what they had bought. But this week is the toughest, and they will start buying them back once the outlook becomes clear.”
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US President Donald Trump has promised to unveil a massive tariff plan on Wednesday, which he has dubbed “Liberation Day.” He has already imposed tariffs on aluminium, steel and autos, along with increased tariffs on all goods from China.
Trump said on Sunday reciprocal tariffs that he is set to announce will include all nations, not just a smaller group of 10 to 15 countries with the biggest trade imbalances.
Wall Street stocks ended sharply lower on Friday, with sell-offs in tech giants such as Amazon and Microsoft, after US data fuelled fears of weak economic growth and high inflation as the Trump administration ratchets up tariffs.
In Japan, Uniqlo-brand owner Fast Retailing lost 3.67 per cent on Monday, while chip-related Tokyo Electron and Advantest slipped 6.57 per cent and 7.65 per cent, respectively.
Shares of Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group lost 4.62 per cent and 3.58 per cent, respectively.
Automakers fell, with Toyota Motor and Honda Motor losing 3.13 per cent and 3.97 per cent, respectively.
All 33 industry sub-indexes on the Tokyo Stock Exchange declined, while the Nikkei volatility index surged 5.8 points to 28.15, marking its largest gain since September 4.
All but one of 225 components of the Nikkei index fell, with chipmaker Renesas Electronics tanking 11.21 per cent.
Home interior goods retailer Nitori Holdings rose 2.28 per cent. AFP
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