Japanese Stocks Fall on Tariff, Auto, Pharma Caution
Japanese stocks closed lower on Monday as automakers, drugmakers and other exporters tumbled after U.S. President Trump said he was eyeing 25% tariffs on imports of cars, chips and pharmaceuticals.
The Topix fell 0.3% to 2,767.25 at the close in Tokyo. The Nikkei 225 fell 0.3% to 39,164.61.
Automakers weighed on the Topix the most, with Toyota and Honda down more than 1.7%. Chip equipment makers Keyence and Hoya and drugmaker Daiichi Sankyo also fell.
Trump’s comments on Tuesday, combined with uncertainty over whether Japan will be able to get an exemption from its levies, are fueling investor uncertainty, said Tomo Kinoshita, global market strategist at Invesco Asset Management.
“I’m not sure the potential negative impact of Trump’s tariffs has been fully priced into the market. And in Japan’s case, many companies have manufacturing bases in China, so investors should also be concerned about Trump’s China policy,” Kinoshita said. “It’s natural for the market to be more cautious.”
Trading companies also fell, with the Topix wholesale trade subindex down 1.4%. Concerns about how a stronger yen could weigh on profits as the Bank of Japan resumes interest rate hikes are a risk for exporters, said Yutaka Miura, senior technical analyst at Mizuho Securities.
Cosmetics maker Shiseido was a bright spot in afternoon trade, jumping as much as 13.7%, the most since 2018, after British fund Independent Franchise Partners announced a stake in the company and said it would submit a proposal.
Source: Bloomberg
