Nikkei Down as Investors Cut Risks Amid U.S. Debt Worries
Japanese stocks fell on Friday as investors cut risks ahead of a long U.S. holiday weekend and the inauguration of President-elect Donald Trump. The Nikkei 225 fell 0.37 percent, or 142.42 points, to close at 38,430.18. Worries about bond vigilantes have resurfaced as Trump prepares to take office on Jan. 20, with the U.S. debt-to-GDP ratio nearing 100 percent.
By 2027, the ratio is expected to surpass a post-World War II record, while rising bond yields—up more than a percentage point since September 2024—pose a potential challenge to Trump’s policy agenda. On the corporate side, Nippon Prologis REIT (TYO:3283) will buy Prologis Park Ichikawa 2 in Chiba for 27.44 billion yen, with completion to be completed in stages from February 2025 to February 2027, generating annual rent of 1.3 billion yen. The company will also sell two properties to Japan Logistics Fund (TYO:8967) for 26.30 billion yen, with expected profits of 5.3 billion yen and 6 billion yen, respectively, according to a filing on Thursday.
Hino Motors (TYO:7205) settled a US emissions certification investigation, agreeing to a criminal fine of $521.8 million and a civil penalty of $678.5 million. The settlement covers engine improvements and environmental programs. Hino has provided related costs of 230 billion yen in Q2 FY25. Toyota Industries (TYO:6201) will list a $10 million floating-rate bond due Dec. 27, 2029, on the Singapore Stock Exchange. Trading will begin on Jan. 20, according to a report Friday. (AL)
Source: Bloomberg
