Nikkei 225 and Topix In Tokyo Halt 2-Day Rally Amid Worries of Rising Trade Tensions

Akira Ito
26 Nov, 2024
Tokyo

Sentiment in Tokyo soured, and benchmark indexes traded down, reversing gains of the previous two sessions. 

The Nikkei 225 stock average fell 1.4%, and the broader Topix index fell 1.5% as investors worried about the U.S. trade policy uncertainty and rising geopolitical tensions. 

Japan exports about 18% of its goods to China, and the worsening economic outlook in the second-largest economy has kept investor sentiment negative. 

Moreover, the next U.S. administration is likely to increase tariffs on all imported goods, including products made in Japan and made by Japan in Asia and Mexico and Canada. 

Rising trade barriers, export controls, and escalation of tariffs are likely to provide additional headwinds to export-driven companies in Japan and dampen overall economic growth. 

Japan, with heavy reliance on exports to China, remains vulnerable to economic volatility and slowdown in the second-largest economy.

On the economic front, investors are looking forward to the release of Tokyo area inflation data on Friday, and the region's trend is generally indicative of the broader patterns in Japan. 

 

Japan Stock Movers 

The Nikkei 225 Stock Average decreased 1.4% to 38,247.44, and the broader Topix index fell 1.5%. 

Volatile tech stocks led the decliners, and semiconductor equipment stocks topped the chart. 

Tokyo Electron decreased 2.7% to ¥22,510.0, Advantest Corp. fell 4.4% to ¥8,827.0, Lasertec declined 5.7% to ¥16,670.0, and Disco Corp. eased 3.3% to ¥41,340.0. 

Keisei Electric Railway Co. Ltd. increased 1.5% and extended two-day gains to over 15% after an activist investor took a stake in the company, which could force the company to boost shareholder return. 

East Japan Railway decreased 0.6% to ¥2,824.50, West Japan Railway added 0.1%, and Oriental Land eased 1.1% to ¥3,440.0. 

Haseko Corp rose 2.2% to ¥1,980.0, Daiwa House decreased 0.1% to ¥4,651.0, and Sekisui House edged down 0.1% to ¥3,586.0. 

Toyota Motor declined 1% to ¥2,667.50, Honda Motor fell 1.9% to ¥1,333.0, and Nissan Motor dropped 3.6% to ¥392.10.