Japan’s Nikkei edges lower amid caution over upcoming U.S. tariffs
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Japan's Nikkei stock index declined for the third consecutive session on Monday as caution prevailed ahead of the approaching U.S. tariff deadline, prompting investors to reduce exposure to riskier assets.
The Nikkei index closed 0.2% lower at 37,608.49, with the broader Topix index down by 0.5% to 2,790.88 after touching an eight-month high last Friday. Market sentiment was constrained due to uncertainties surrounding President Trump’s anticipated tariff implementation on April 2.
SoftBank Group provided notable support to the Nikkei, gaining 3% as investors reacted positively to the firm’s ongoing investments in AI startups. However, broader market performance remained subdued as traders navigated between optimism and caution, influenced by mixed signals from U.S. markets, where the S&P and Dow Jones saw late-week rebounds after Trump indicated possible flexibility on tariffs.
Kazuo Kamitani, strategist at Nomura Securities, emphasized that the market remains in a holding pattern, waiting for clearer details on the impending U.S. tariffs. The lack of definitive information has kept investors cautious, limiting potential gains.
Semiconductor stocks were particularly weak, reflecting losses in their U.S. counterparts. Tokyo Electron declined by 0.8%, Advantest slipped 1.2%, and Screen Holdings experienced a significant fall of 3.5%, ranking among the biggest losers.
Other major stocks showed mixed performance, with Fast Retailing slightly declining by 0.1% after erasing earlier gains, and telecom company KDDI dropping by 1.3%. Conversely, Seven & i Holdings advanced 1.8%.
Sumitomo Realty & Development stood out positively, surging 10.5% following reports that Elliott Management Corp has built a substantial stake in the company, signaling heightened investor interest in the real estate sector.
Investors will closely monitor developments regarding the U.S. tariffs in the coming days, as any clarity could significantly impact market movements and investor sentiment.
The Nikkei index closed 0.2% lower at 37,608.49, with the broader Topix index down by 0.5% to 2,790.88 after touching an eight-month high last Friday. Market sentiment was constrained due to uncertainties surrounding President Trump’s anticipated tariff implementation on April 2.
SoftBank Group provided notable support to the Nikkei, gaining 3% as investors reacted positively to the firm’s ongoing investments in AI startups. However, broader market performance remained subdued as traders navigated between optimism and caution, influenced by mixed signals from U.S. markets, where the S&P and Dow Jones saw late-week rebounds after Trump indicated possible flexibility on tariffs.
Kazuo Kamitani, strategist at Nomura Securities, emphasized that the market remains in a holding pattern, waiting for clearer details on the impending U.S. tariffs. The lack of definitive information has kept investors cautious, limiting potential gains.
Semiconductor stocks were particularly weak, reflecting losses in their U.S. counterparts. Tokyo Electron declined by 0.8%, Advantest slipped 1.2%, and Screen Holdings experienced a significant fall of 3.5%, ranking among the biggest losers.
Other major stocks showed mixed performance, with Fast Retailing slightly declining by 0.1% after erasing earlier gains, and telecom company KDDI dropping by 1.3%. Conversely, Seven & i Holdings advanced 1.8%.
Sumitomo Realty & Development stood out positively, surging 10.5% following reports that Elliott Management Corp has built a substantial stake in the company, signaling heightened investor interest in the real estate sector.
Investors will closely monitor developments regarding the U.S. tariffs in the coming days, as any clarity could significantly impact market movements and investor sentiment.