Japanese Stocks Drop as Concern Over Yen and Tariffs Mounts
Japanese stocks fell as the yen’s appreciation and concerns about tariffs weighed on sentiment, dragging down electrical equipment and machinery shares.
Topix Index fell 0.6% to 2,812.34 as of 3:31 p.m. Tokyo time
Nikkei declined 0.4% to 39,646.36
Sony Group Corp. contributed the most to the Topix Index decline, decreasing 1.7%. Out of 1,680 stocks in the index, 521 rose and 1,094 fell, while 65 were unchanged.
Pharmaceuticals and automobiles also saw some profit taking amid continuing concerns over US tariffs. President Donald Trump unveiled a new round of tariff demand letters on Wednesday, including a 50% rate on Brazil.
“With more details on tariffs coming out, including the case of Brazil, the market’s attention has once again shifted back toward tariffs,” said Yugo Tsuboi, chief strategist at Daiwa Securities. “There remains considerable uncertainty around how tariffs could impact sectors like semiconductors and pharmaceuticals.”
“With the US stocks keep hitting new highs, President Trump may get aggressive with the trade deal,” said Mamoru Shimode, chief strategist at Resona Asset Management Co., adding that Trump softened stance in April following negative reactions in the market. “Although there’s still time until Aug. 1, it’s looking challenging to reach a deal.”
Concerns about this month’s upper house elections also hurt sentiment. While the ruling Liberal Democratic Party coalition has a comfortable majority in the upper house, a setback at the July 20 election could hamper trade talks with the US.
“Increasing uncertainty about the upper house election, with daily reports of the LDP’s struggles, has led to awareness of the risk that tariff negotiations between the US and Japan may not go well,” said Seiichi Nozaki, general manager of the securities investment department at Fukoku Mutual Life Insurance.
Source : (ayu-newsmaker)
