FX.co ★ Japanese Shares Slip as Automakers Drag

On Thursday, the Nikkei 225 decreased by 0.5%, bringing it below 37,900, while the broader Topix Index declined by 0.4% to 2,800, thereby ending a two-day upward trend. The automotive sector experienced significant losses following the announcement by US President Donald Trump of a 25% tariff on all imported cars and light trucks, which is set to be implemented next week. In response, Japanese automobile manufacturers such as Toyota Motor (-2.9%), Honda Motor (-2.3%), Subaru (-5.7%), Mazda Motor (-5.3%), and Nissan Motor (-3.5%) reported notable declines. Additionally, technology stocks fell amid a broader tech sell-off on Wall Street. Noteworthy downturns were observed in companies like Advantest (-5.3%), Fujikura (-5.1%), Disco (-3.7%), SoftBank Group (-3.4%), and Lasertec (-1.5%). At the same time, investors are carefully analyzing the Bank of Japan's policy direction after Governor Kazuo Ueda indicated to parliament that interest rate increases would persist if current economic forecasts remain accurate.