TOKYO: Japan’s Nikkei share average fell over 1% to end at a more-than two-week-low on Thursday, as automakers declined due to a stronger yen, while investors assessed the potential impact of US President Donald Trump’s latest tariff threat.
The Nikkei fell 1.24% to 38,678.04, its lowest close since Feb. 3, while the broader Topix lost 1.18% at 2,734.6.
“The yen’s strength against the dollar and uncertainties about the US tariff policy pushed Japanese equities lower,” said Naoki Fujiwara, senior fund manager at Shinkin Asset Management.
The yen hit its strongest level in over two months on Thursday on bets on further rate hikes from the Bank of Japan (BOJ), while concerns about new tariff threats from the US kept markets on edge.
A stronger Japanese currency tends to hurt exporters, as it decreases the value of overseas profits in yen terms when firms repatriate them to Japan.
Automakers lost ground, with Toyota Motor falling 1.63% to drag the Topix the most. Honda Motor and Nissan Motor slipped 1.37% and 2.83%, respectively.
Uncertainties about Trump’s tariff plans also weighed on automakers. Trump said on Wednesday he would announce tariffs related to lumber, cars, semiconductors and pharmaceuticals “over the next month or sooner.”