Japan’s stock futures slumped after President Donald Trump slapped the nation with a 24 per cent levy as part of tariffs on trading partners worldwide. A stronger yen may also drag exporter shares lower.
Nikkei 225 futures were at 34,455.00 on the Chicago Mercantile Exchange as of 7:23 a.m. Tokyo time, about 3.6 per cent lower compared with the close for the underlying gauge. Contracts traded in Singapore initially spiked, then fell as details of the tariffs rolled out, suggesting the market will face volatility Thursday as investors continue to digest the news.
“Overall I think this was on the harder side of expectations,” said Nick Twidale, chief analyst at AT Global Markets in Sydney. “Japan and most of Asia took a hit — I think stocks will take a battering in Asia today, alongside most currencies, although the yen is a different story and may appreciate on its haven status.”
Trump Tariffs Spare No Country, Many in Asia, Europe Hit Harder
Trump also reiterated 25% tariff on autos, which may weigh on carmakers that are already underperforming the broader Topix index this year. The yen strengthened as much as 0.7 per cent to 148.17 per dollar, while US equity futures sank amid concern the escalating trade war will harm the nation’s economy.
Japan’s benchmark Topix is down more than 4 pre cent this year as jitters over the tariffs damped investor sentiment. The exporter- and tech-heavy Nikkei 225 has been hit harder, tumbling more than 10 per cent from its December peak to enter a correction.
Shares of Nintendo Co. may be active after unveiling details of its new Switch 2 console. While some projections point to optimistic outlook for the new portable device, concern the new tariffs may drive up the price may weigh on shares.
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