Japan’s Nikkei Enters Bear Market While Ishiba Seeks Tariff Deal
Japan’s Nikkei 225 Stock Average slid into a bear market over fears of a widening trade war, while the government sought to pull together a wide-ranging deal to negotiate with Washington on US tariffs.
The blue-chip index closed 7.8% down on Monday, taking its loss from its December peak to 23%. The broader Topix index also sank, with electronics makers and banks weighing on the benchmark as Japan’s economic outlook darkened.
It’s the first time the Nikkei has entered a bear market since August, when an unexpected rate hike by the Bank of Japan triggered a widespread market rout.
Prime Minister Shigeru Ishiba told parliament he would strongly urge President Donald Trump to drop the planned US levies on Japanese imports, first by holding a phone call with the president. The move comes after Trump signaled that he wasn’t planning to claw back the tariffs that had roiled financial markets worldwide.
“We must make it clear that our country is not doing anything unfair,” Ishiba said.
Tokyo is scrambling to coordinate its response after being caught off guard by Washington’s move to slap a 24% tariff on its goods with effect from April 9. Its main stock gauges have trailed all other major Asian indexes this month as Beijing’s decision to impose commensurate levies on American goods stoked fears of an escalating trade war.
Source: Bloomberg
