Japanese Stock Market Drops as Trump Threatens Tariffs
Tokyo (Bloomberg) -- The Japanese stock market reversed earlier gains on Tuesday after US President Donald Trump announced potential tariffs on Canada and Mexico. This dashed hopes of a more moderate trade policy.
The Topix Index declined 0.2% to 2,706.60 as of 9:56 a.m. Tokyo time, while the Nikkei 225 fell 0.1% to 38,877.73. The losses erased previous advances.
Automakers, particularly vulnerable due to exports from Japanese and Mexican factories to the US, were among the biggest losers. Mazda Motor shed up to 2.6%.
Gainers
* Ibiden (4062) +3.5%
* DeNA (2432) +2.8%
* Disco (6146) +2.4%
Losers
* Money Forward (3994) -4.9%
* Fuji Media (4676) -4.3%
* Rakuten Bank (5838) -3.3%
Insights
* 17 of 33 Tokyo Stock Exchange sector indexes climbed; the TOPIX Other Products Index was the standout performer, while the TOPIX Mining Index declined the most.
* The MSCI AC Asia Pacific Index remained unchanged.
* The Topix Index has gained 7.8% over the past year, lagging behind the MSCI AC Asia Pacific Index's 10% increase.
* Topix Index members trade at a price-to-earnings ratio of 14.5 based on earnings estimates for the next 12 months.