This file photo shows the Tokyo Stock Exchange. (Mainichi)
TOKYO (Kyodo) — Tokyo stocks dropped Wednesday morning, pressured by growing concern that U.S.-Japan tariff negotiations could be prolonged after U.S. President Donald Trump cast doubt on the prospects of a deal.
The 225-issue Nikkei Stock Average fell 392.61 points, or 0.98 percent, from Tuesday to 39,593.72. The broader Topix index was down 14.10 points, or 0.50 percent, at 2,817.97.
The U.S. dollar briefly strengthened to the upper 143 yen range in Tokyo amid easing speculation that the U.S. Federal Reserve will cut interest rates soon, dealers said.
At noon, the dollar fetched 143.53-54 yen compared with 143.37-47 yen in New York and 143.07-09 yen in Tokyo at 5 p.m. Tuesday.
The euro was quoted at $1.1800-1801 and 169.37-40 yen against $1.1802-1812 and 169.25-35 yen in New York and $1.1783-1785 and 168.59-63 yen in Tokyo late Tuesday afternoon.
Stocks also declined as fears grew that corporate earnings could be hurt by higher U.S. tariffs, after Trump floated the idea of further increasing levies on imports from Japan, possibly to a level as high as 30 or 35 percent.
The Nikkei index briefly lost more than 500 points as heavyweight semiconductor-related shares were sold after an overnight decline on the tech-heavy U.S. Nasdaq index.
AloJapan.com