Japan's Nikkei closes lower after Trump pledges fresh tariffs
Updates for market close
By Brigid Riley
TOKYO, Nov 26 (Reuters) -Japan's Nikkei share average declined on Tuesday as the market weighed U.S. President-elect Donald Trump's pledge to impose tariffs on all imports from Canada and Mexico, along with additional tariffs on China.
TheNikkei index .N225 closed 0.9% lower at 38,442, after sliding nearly 2% during morning trade. The broader Topix .TOPX finished about 1% at 2,689.55.
Trump said on Monday that on his first day in office he would impose a 25% tariff on all products from Mexico and Canada and an additional 10% tariff on goods from China, citing concerns over illegal immigration and trade of illicit drugs.
Of the Nikkei's 225 constituents, 147 declined while 75 advanced, with losses narrowing in afternoon trade as investors digested the news. Three shares were untraded.
"Ten percent across the board (for China) is not as big as the one that he was talking about, 60%. But it still came in a more concrete way, so I think the initial reaction was rather negative," Nomura's chief macro strategist Naka Matsuzawa said.
The 25% tariff plans on imports from Canada and Mexico were probably bigger than the market expected, he added.
Chip-related stocks led losses, with Advantest 6857.T down 4.3% to become the biggest drag on the Nikkei. Tokyo Electron 8035.T tumbled 2.1%.
Microchip equipment maker Lasertec Corp 6920.T was one of the biggestpercentage losers with a 5.5% drop, behind electronics component maker Fujikura 5803.T, down 6.8%.
Major automakers also slid, with ToyotaMotor 7203.T and Honda Motor 7267.T slipping 1% and 1.9%,respectively.
The machinery sector lost 1.4%. Mitsubishi Heavy Industries 7011.T stumbled 3.3%,while Kawasaki Heavy Industries 7012.T shed 5.4%.
Shares of IHI 7013.T were down 4.9%,with news that Japan's space agency has halted an engine combustion test of its Epsilon S rocket after a fire broke out at the test site also weighing on sentiment.
Reporting by Brigid Riley; Editing by Sumana Nandy, Sherry Jacob-Phillips and Janane Venkatraman
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
