Japan Indexes Plunged 4% Following Wall Street Weakness, Retail Sales and Industrial Output Painted Mixed Picture

Akira Ito
31 Mar, 2025
Tokyo

Stock market indexes in Tokyo plunged following sharp losses in Friday's trading in New York. 

The Nikkei 225 Stock Average dropped 4%, and the broader TOPIX decreased 3.6% amid a widespread sell-off in technology, financials, and industrial stocks. 

Investors were on the defensive after the U.S. imposed a 25% tariff on all imported vehicles and automotive parts, which is likely to raise risks of economic recession and fuel inflation. 

The import tax is scheduled to come into effect from April 2, but the White House has announced few details on how the tax will be imposed, calculated, and what is deemed as imports. 

Japanese automakers have a significant presence in Mexico, and factories in Canada and Mexico provide duty-free access to U.S. customers, but many times parts and assemblies cross the borders with the U.S. and Canada as much as eight times before the final sale. 

On the economic front, Japan's retail sales advanced for the 35th month in a row in February, the Ministry of Economy, Trade, and Industry reported Monday. 

Retail sales rose at an annual pace of 1.4%, slower than the upwardly revised 4.4% in the previous month, and the softest growth since last October.

Japan's industrial output advanced for the first time in four months in February, the ministry said in a separate report on Monday. 

The industrial output index, which includes production from 15 industries, advanced 2.5% from the previous month in February after a 1.1% decline in January. 

On an annual basis, production increased and slowed to 0.3% from the 2.2% pace in January.

The ministry estimated production to rise monthly 0.6% in March and then slow to a 0.1% increase in April.

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average plunged 4% to 35,617.56, and the broader TOPIX index declined 3.5% to 35,617.56.

Tech stocks led the decliners in Tokyo trading, following sharp losses in semiconductor-related stocks in New York in Friday's trading. 

Tokyo Electron decreased 6.5% to ¥20,110.0, Advantest Corp. plunged 7.6% to ¥6,472.0, and Disco Corp. plunged 8.4% to ¥29,895.0.