FX.co ★ Japanese Shares Plunge Ahead of Trump Tariffs

On Monday, the Nikkei 225 Index experienced a significant drop of nearly 4%, descending below 36,000 and hitting its lowest point in six months. This downturn was attributed to investor reactions to Wall Street's weakness and anticipation of imminent US tariffs. The broader Topix Index mirrored this decline, falling 3.5% to 2,660, marking its lowest level in almost three weeks. In a move with far-reaching consequences for Japan's crucial automotive export industry, President Donald Trump plans to implement 25% tariffs on imported vehicles, alongside proposals for reciprocal trade duties. Domestically, investors faced mixed economic signals: while February's industrial production surpassed expectations, retail sales did not meet forecasts. Nearly all sectors experienced declines, especially sharp in technology, consumer, and industrial stocks. Among the major losers were Disco Corp (-6.5%), Fujikura (-7.3%), Advantest (-6.2%), Toyota Motor (-3.1%), and Kawasaki Heavy Industries (-4.7%).