Tokyo Stock Exchange Plunges, Down 1,502 Yen as Fears Grow Over U.S. Tariff Policy; End-of-Year Stock Prices Fall for First Time in Three Years
On the 31st, the last trading day of fiscal 2024, the Tokyo Stock Exchange saw the Nikkei 225 Stock Average plummet, resulting in a broad decline. It fell below the 36,000 yen mark and closed at 35,617.56 yen, down 1,502.77 yen from the previous weekend. Concerns about the impact of the U.S. administration's tariff policy on the global economy grew in the market, and sell orders increased across a wide range of stocks.
The closing price was the lowest in about eight months since August 9, last year. It was down about 12% from the end of fiscal 2011, when it was over 40,300 yen. It was the first drop in three years, since fiscal 2021.
The Tokyo Stock Price Index (TOPIX) fell 98.52 points to 2,658.73. Trading volume was 2.33555 billion shares.
The upcoming April 3rd additional tariffs on automobiles are a concern, weighing on investors' sentiment. Investors were also weighed down by U.S. President Trump's announcement that reciprocal tariffs would be imposed on the United States, with tariffs equivalent to those of trading partners. "The imposition of these tariffs is gradually becoming more realistic, and concerns about an economic contraction have intensified," said Kazuo Kamiya, a strategist at Nomura Securities.
The fall in U.S. stocks from the weekend of the previous week also had an impact in the morning. The fall in semiconductor-related stocks, which have high share prices, pushed the market down, and export-related stocks such as machinery were also sold due to the strengthening of the yen against the dollar in the foreign exchange market. Financial-related stocks also fell in value as expectations of improved profit margins declined due to the decline in long-term interest rates.
Source: Kyodo News
