The Nikkei 225 slipped 0.6% to close at 37,780 on Thursday, snapping a two-day rally, with automakers leading the decline after US President Donald Trump announced a 25% tariff on all imported cars starting next week.
Japanese carmakers saw steep losses, including Toyota Motor (-2%), Honda Motor (-2.5%), Subaru (-5%), Mazda Motor (-56%), and Nissan Motor (-1.7%).
Meanwhile, Prime Minister Shigeru Ishiba warned that Japan will not rule out countermeasures against Trump’s auto tariffs.
Technology stocks also retreated following a tech-led selloff on Wall Street.
Sharp declines were recorded in Advantest (-7.4%), Fujikura (-7%), Disco (-4.8%), SoftBank Group (-3.9%), and Tokyo Electron (-1.7%).
Meanwhile, investors continued to weigh the Bank of Japan’s policy outlook after Governor Kazuo Ueda told parliament that interest rate hikes would continue if economic projections hold.
AloJapan.com