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Tokyo: Stocks end down over 2% on US tariffs on China
[TOKYO] Tokyo stocks closed down more than two per cent on Friday, hit by worries about the US-China trade war and the yen's rise against the dollar.
The Nikkei 225 index lost 2.11 per cent or 453.83 points to 21,087.16. Over the week, the benchmark index fell 2.64 per cent.
The broader Topix index on Friday shed 2.16 per cent or 33.89 points to 1,533.46 yen for a drop of 2.42 per cent on week.
After Tokyo closed on Thursday, US President Donald Trump's new tariffs on China sent a shockwave through global markets.
Trump's decision to impose tariffs on another $300 billion in Chinese goods aborted an equity market rally following the Federal Reserve's decision Wednesday to cut interest rates for the first time in more than a decade.
The dollar tumbled against the yen, a negative development for Japanese exporters.
"The Tokyo market plunged as its initial reaction to the surprise tweet, and then investors shunned buying ahead of the weekend," said Seiichi Suzuki, senior market analyst at Tokai Tokyo Research Institute.
But Mr Suzuki added "not many investors believe the market will continue to plunge next week" considering stock prices eventually bounced back after earlier rounds of US tariffs on Chinese products and sanctions on Chinese tech giant Huawei.
Some investors will be looking for opportunities to buy on dips while the market digests negative news, he said.