Japanese shares slide most in almost four months on US economic concerns

Reuters
Updated
Mitrade
coverImg
Source: DepositPhotos

- Japanese shares slid the most in almost four months on Monday, as concerns mounted over the U.S. economy and a potential upheaval in domestic politics.

The Nikkei 225 Index of shares sank 1.8% and was set for its steepest decline since April 11. The broader Topix declined 1.5%, with a sub-index of bank stocks plunging 4.2%.

U.S. shares fell sharply on Friday after data showed that the world's largest economy created fewer jobs than expected in July and a new round of punishing U.S. tariffs cast a shadow on global trade.

On the home front, speculation grew that Prime Minister Shigeru Ishiba might resign after last month's election defeat.

Ishiba has consistently denied plans to step down after his ruling coalition lost its majority in the upper house of parliament, but pressure from within his Liberal Democratic Party is mounting.

"We had very weak job market data in the U.S. and sentiment among investors has darkened," said Kenji Abe, chief strategist at Daiwa Securities.

"There is some chance that Prime Minister Ishiba may be forced to step down, so I think that's one thing we should watch."

There were 34 advancers on the Nikkei against 189 decliners. The biggest loser was Credit Saison with a drop of 8.2%, followed by Yamaha, which sank 7.9%.

The U.S. Labor Department said the country added 73,000 nonfarm payrolls last month, below economists' expectations, while June's job growth was revised sharply lower.

Tariffs that U.S. President Donald Trump imposed last week on dozens of countries are likely to stay in place rather than be cut as part of continuing negotiations, Trade Representative Jamieson Greer said.

The tariffs include a 35% duty on many goods from Canada, 50% for Brazil, 25% for India, 20% for Taiwan and 39% for Switzerland.

Among the few gainers on the Nikkei, chip maker Socionext rose the most, up 3.9%, followed by optics company Hoya, which advanced 2.7%.

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
S&P 500 Rides 5-Month Winning Streak Into the Seasonal Golden Window Q4For months, U.S. equity investors have largely shrugged off headwinds from Trump’s tariffs, economic slowdown concerns, and seasonal weakness.
Author  TradingKey
8 hours ago
For months, U.S. equity investors have largely shrugged off headwinds from Trump’s tariffs, economic slowdown concerns, and seasonal weakness.
placeholder
Alibaba surges 50% in September, tops Hang Seng tech indexThe Hong Kong-listed stock rose as much as 4.1% to over HK$173 during Monday’s session.
Author  Cryptopolitan
Yesterday 09: 46
The Hong Kong-listed stock rose as much as 4.1% to over HK$173 during Monday’s session.
placeholder
BYD shrugs off Buffett’s Berkshire sell-downBYD has confirmed that Berkshire Hathaway completely sold off its remaining shares earlier this year, ending a 17-year run that began in 2008.
Author  Cryptopolitan
Sep 28, Sun
BYD has confirmed that Berkshire Hathaway completely sold off its remaining shares earlier this year, ending a 17-year run that began in 2008.
placeholder
Meta Bets Billions on Robotics, Aiming to Become the "Android of Robotics"Building humanoid robots has become Meta's next "AR-level bet."
Author  TradingKey
Sep 28, Sun
Building humanoid robots has become Meta's next "AR-level bet."
placeholder
Trump Signs Order, TikTok U.S. Divestiture Officially BeginsPresident Donald Trump signed an executive order on Thursday formally approving the divestiture of TikTok’s U.S. operations, paving the way for the long-anticipated deal.
Author  TradingKey
Sep 26, Fri
President Donald Trump signed an executive order on Thursday formally approving the divestiture of TikTok’s U.S. operations, paving the way for the long-anticipated deal.
Real-time Quote