Nikkei 225 In Tokyo Extended YTD Losses to 6% Amid Tariff and Rate Path Uncertainties

Akira Ito
11 Mar, 2025
Tokyo

Stock market indexes in Tokyo extended losses following losses in overnight trading in New York. 

The Nikkei 225 stock average decreased 0.5% and extended losses to 15% from the nine-month peak in July 2024.

The Topix fell more than 1% and extended losses to 10% over the nine-month period after domestic investors scaled back amid stretched valuation worries and rising trade tensions with the U.S. 

Market sentiment deteriorated further in Tuesday's trading after the Cabinet Office lowered its economic growth estimate for the fourth quarter. 

Japan's GDP growth in the fourth quarter was revised to an annual pace of 2.2% from the previous estimate of 2.8% after private consumption stalled and overwhelmed the rising spending by the government and businesses. 

Japan's indexes extended weekly losses in Tuesday's trading following another down day in New York in overnight trading, amid growing fears of a sharp slowdown in economic activities driven by the Trump administration's trade policy uncertainty. 

The tech-heavy Nasdaq Composite plunged 4%, and the broader and large-cap-focused S&P 500 index declined 2% in overnight trading.

The Nasdaq Composite is now in the correction territory after peaking in mid-February.

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average declined 0.5% to 36,793.11, and the broader TOPIX index decreased 1.1% to 2,670.72.

The yen edged higher to 147.05 against the U.S. dollar, and currency traders held out for another rate hike late

Banks, vehicle makers, machinery exporters, and semiconductor equipment companies led the decliners in Tokyo. 

Mitsubishi UFJ Financial Group dropped 1.4% to ¥1,893.0, IHI Corp. declined 1.2% to ¥10,150.0, Toyota Motor fell 2.6% to ¥2,754.50, Marubeni Corp. eased 1.4% to ¥2,370.50, and Tokyo Electron decreased 0.5% to ¥21,370.0.