TOKYO: Japan’s Nikkei share average slipped on Wednesday, ending nearly 4% lower in a broad sell-off, as traders gauged concerns over a potential economic slowdown amid an intensifying trade war between the United States and China.
The Nikkei share average fell 3.9% to close at 31,714.03, while the broader Topix dropped 3.4% to 2,349.33.
The index saw significant volatility this week, closing 6% higher on Tuesday after a 7.8% slump on Monday pushed it to a 1-1/2-year low.
The Nikkei extended its losses to 5.3% earlier in the day after US President Donald Trump’s “reciprocal” tariffs on dozens of countries took effect, including massive 104% duties on Chinese goods, deepening his global trade war even as he prepared for negotiations with some nations.
The deepening losses of the Nikkei index were associated with a surge of US Treasury yields in Asia trade, in a sign investors are selling even their safest assets amid the rout, said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.
“The markets are now in panic, and any big move could drive a sell-off of risk assets,” said Yasuda.
In Japan, technology stocks drove the losses on Nikkei, with Advantest and Tokyo Electron falling 7.8% and 6%, respectively.
Technology investor SoftBank Group fell 7.2%.