The Nikkei 225 Index tumbled 1.7% to below 37,200, while the broader Topix Index dropped 1.6% to 2,770 on Friday, hitting a two-week low as automakers continued to reel from US President Donald Trump's auto tariffs.
Earlier this week, Trump announced a 25% tariff on all car imports starting next week, dealing a blow to Japan's export-driven economy, which relies heavily on auto shipments to the US. Major automakers suffered steep losses, including Toyota (-4.7%), Honda (-4.5%), Mazda (-3.4%), Subaru (-2.7%), and Suzuki (-2.2%). Japanese technology stocks also followed their US counterparts lower, with Disco (-1.7%), Advantest (-2.3%), and Tokyo Electron (-3.1%) posting declines.
Meanwhile, a summary of opinions from the Bank of Japan's March meeting reinforced expectations that the central bank will continue raising interest rates if its economic and price outlook holds. Both the Nikkei and Topix indexes are now on track for a nearly 2% weekly decline.
Source : Trading Economics
