FRIDAY, March 29, 2024
nationthailand

Tokyo's Nikkei plunges 3% at open on trade war fears

Tokyo's Nikkei plunges 3% at open on trade war fears

Tokyo stocks opened sharply down Friday, with the benchmark Nikkei 225 index falling three percent on revived trade war fears as US President Donald Trump unveiled tariffs on Chinese imports.

The Nikkei fell 3.0 percent or 648.50 points to 20,943.49 in early trade, while the broader Topix index dropped 2.53 percent or 43.67 points, to 1,683.72.

The dollar fell below the 105 yen level in early Asian trade for the first time since November 2016, as investors were seen taking refuge in the safe haven Japanese currency.

The drop came after US President Donald Trump unveiled tariffs of up to $60 billion on Chinese imports, reviving fears of a trade war.

Trump's surprise decision to naming hardline former UN ambassador John Bolton as his new national security advisor was also pushing the dollar down against the yen, Okasan Online Securities senior strategist Rikiya Takebe said in a commentary.

The drop in Tokyo trade follows steep falls in global stocks on the new US tariffs, with the Dow Jones Industrial Average closing down 2.9 percent.

But Okasan's stocks strategist Yoshihiro Ito noted that bargain-hunting purchases could emerge in later trade.

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