Japanese Stocks Fall on Trump’s Plans for Extra Tariffs on China
Japanese stocks opened sharply lower after US President Trump announced that he will impose an additional 10% tariff on China, which fueled concerns about the negative impact on the economy and corporate earnings.
The Topix Index fell 1.1% to 2,705.54 as of 9:15 a.m. Tokyo time.
Hitachi contributed the most to the Topix decline, decreasing 4.1%; Out of 1,694 stocks in the index, 613 rose and 983 fell, while 98 were unchanged.
The Nikkei declined 1.9% to 37,520.40.
There was a broad selloff in export-sensitive industries such as electronics and automobiles, non-ferrous metals and shipping.
Trump’s plans for additional tariffs on China are weighing on the market, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management. Ichikawa noted that if the levies go ahead, China will probably respond with additional duties.
Even after Nvidia’s results, concerns about the outlook for the semiconductor industry haven’t been dispelled, bringing the sector under pressure, Ichikawa said.
Source: Bloomberg
