TOKYO: Japan’s Nikkei share average fell on Monday after Moody’s downgrade of the US government credit rating raised concerns about a potential flight from US assets, leading to a stronger yen.
The Nikkei index ended 0.68% lower at 37,498.63. The broader Topix inched down 0.08% to 2,738.39.
“The market is cautious about the impact of the Moody’s downgrade of the United States. They are worried this could drive a sell-off of US assets,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.
“The timing of the downgrade was bad. It came at a time now when domestic stock markets recouped losses from (US President Donald) Trump’s tariff announcement,” he said.
Moody’s downgraded the US sovereign credit rating on Friday due to concerns about the nation’s growing, $36 trillion debt pile, in a move that could complicate Trump’s efforts to cut taxes and send ripples through global markets.
US assets saw a sell-off last month following Trump’s decision on April 2 to slap sweeping tariffs on trading partners, including key strategic allies such as Japan.
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