Tokyo shares plunged on Monday, the overall day of Japan’s 2024 fiscal 12 months, with the Nikkei index finishing down 4 % at a seven-month low amid promoting prompted by way of fear over the hostile have an effect on of U.S. price lists at the Jap financial system.
The 225-issue Nikkei Inventory Reasonable slid 1,502.77 issues, or 4.05 %, from Friday to 35,617.56, its lowest last since Aug. 9, and completing down 11.8 % from a 12 months previous. The wider Topix index completed 98.52 issues, or 3.57 %, decrease at 2,658.73.
All sectors misplaced flooring at the top-tier High Marketplace, with decliners led by way of insurance coverage, nonferrous steel, and oil and coal product problems.
The U.S. greenback in brief weakened to the higher 148 yen vary in Tokyo, because the yen, observed as a safe-haven asset, was once purchased on fears of an financial slowdown in america because of President Donald Trump’s industry insurance policies, sellers mentioned.
Monetary knowledge track in Tokyo displays the Nikkei inventory index plummeting greater than 1,500 issues to near at 35,617.56 on March 31, 2025. (Kyodo)
At 5 p.m., the greenback fetched 149.13-15 yen when put next with 149.75-85 yen in New York and 150.38-40 yen in Tokyo at 5 p.m. Friday.
The euro was once quoted at $1.0831-0832 and 161.53-57 yen towards $1.0828-0838 and 162.18-28 yen in New York and $1.0786-0788 and 162.21-25 yen in Tokyo overdue Friday afternoon.
The yield at the benchmark 10-year Jap executive bond ended at a four-week low at 1.485 %, down 0.060 proportion level from Friday’s shut. The debt was once purchased as a secure asset because the Nikkei inventory index sharply dropped.
At the inventory marketplace, the Nikkei benchmark adopted Wall Side road’s plunge overdue closing week as fears grew over a possible financial hunch accompanied by way of top inflation on the earth’s greatest financial system.
Heavyweight era shares fell sharply following declines by way of their U.S. opposite numbers, whilst auto stocks had been bought off forward of Trump’s further 25 % price lists on all cars made out of doors america, set to take impact on Thursday.
“Fear concerning the Jap financial system has began to smolder, bearing in mind (the price lists’ anticipated) hostile have an effect on at the auto business, which is the rustic’s key business,” mentioned Kazuo Kamitani, a strategist on the Funding Content material Division of Nomura Securities Co.
Whilst optimism prevailed prior to Trump took place of work in January, as he was once observed as aware of monetary markets, sentiment has since worsened as he introduced a chain of competitive tariff measures in spite of endured inventory declines, agents mentioned.
“The marketplace noticed that the consequences of the price lists have began to steer the actual financial system in america,” dealing a blow to Jap equities as smartly, mentioned Masahiro Yamaguchi, head of funding analysis at SMBC Consider Financial institution.
“Traders have discovered it tricky to issue within the have an effect on of the price lists, because the U.S. management is taking time to announce measures one after some other, most likely resulting in a chance of shares sliding additional,” Yamaguchi added.
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