Japanese Stocks Fluctuate Amid Concerns Over U.S. Economy, Tariffs
Japanese stocks fluctuated after data showed U.S. retail sales fell the most in nearly two years and President Donald Trump’s tariff plans sparked threats of retaliation.
The Topix index rose 0.1% to 2,762.36 as of 9:33 a.m. Tokyo time.
The Nikkei 225 was barely changed at 39,159.01
Automakers weighed the most on the Topix after data showed U.S. retail sales fell the most in nearly two years in January, suggesting a sudden pullback by consumers after a shopping spree in the final months of 2024.
“I expect the market to fall in response to U.S. retail sales,” said Shoji Hirakawa, chief global strategist at Tokai Tokyo Intelligence Lab. “U.S. stocks are supported to some extent by expectations of interest rate cuts, but for Japanese stocks, concerns about the economy are likely to come to the fore.”
Investors remained cautious as Japan sought an exemption from so-called reciprocal tariffs that Donald Trump plans to impose this year as the Asian nation seeks to minimize potential fallout. German Chancellor Olaf Scholz said the European Union was strong enough to counter the threat of U.S. tariffs but he hoped a negotiated deal could avoid a trade war.
“The tariffs on cars that President Trump mentioned are risky, although the details are unclear,” said Hirakawa of Tokai Tokyo. “However, since the tariffs are said to be introduced in April, there seems to be some part of the negotiation involved.”
Sumitomo Mitsui Financial Group was the biggest contributor to the Topix’s gains, rising 2.4%. Of the 1,695 stocks in the index, 991 rose and 631 fell, while 73 were unchanged.
Source: Bloomberg
