The Nikkei 225 fell 0.6% to close at 37,780 on Thursday, ending a two-day rally, with automakers leading the decline after U.S. President Donald Trump announced a 25% tariff on all imported cars starting next week. Japanese automakers suffered the biggest losses, including Toyota Motor (-2%), Honda Motor (-2.5%), Subaru (-5%), Mazda Motor (-56%), and Nissan Motor (-1.7%). Meanwhile, Prime Minister Shigeru Ishiba warned that Japan would not rule out retaliatory action against Trump's auto tariffs. Technology stocks also fell following a tech-led selloff on Wall Street. Sharp declines were recorded in Advantest (-7.4%), Fujikura (-7%), Disco (-4.8%), SoftBank Group (-3.9%), and Tokyo Electron (-1.7%). Meanwhile, investors continued to weigh the Bank of Japan's policy outlook after Governor Kazuo Ueda told parliament that interest rate hikes would continue if economic projections were met. (Newsmaker23)

Source: Trading Economics