TOKYO, Aug 4 (Reuters) - Japanese shares slid the most
in almost four months on Monday, as concerns mounted over the
U.S. economy and a potential upheaval in domestic politics.
The Nikkei 225 Index of shares sank 1.8% and was set
for its steepest decline since April 11. The broader Topix
declined 1.5%, with a sub-index of bank stocks
plunging 4.2%.
U.S. shares fell sharply on Friday after data showed that
the world's largest economy created fewer jobs than expected in
July and a new round of punishing U.S. tariffs cast a shadow on
global trade.
On the home front, speculation grew that Prime Minister
Shigeru Ishiba might resign after last month's election defeat.
Ishiba has consistently denied plans to step down after his
ruling coalition lost its majority in the upper house of
parliament, but pressure from within his Liberal Democratic
Party is mounting.
"We had very weak job market data in the U.S. and sentiment
among investors has darkened," said Kenji Abe, chief strategist
at Daiwa Securities.
"There is some chance that Prime Minister Ishiba may be
forced to step down, so I think that's one thing we should
watch."
There were 34 advancers on the Nikkei against 189 decliners.
The biggest loser was Credit Saison ( CSASF ) with a drop of
8.2%, followed by Yamaha ( YAMCF ), which sank 7.9%.
The U.S. Labor Department said the country added 73,000
nonfarm payrolls last month, below economists' expectations,
while June's job growth was revised sharply lower.
Tariffs that U.S. President Donald Trump imposed last week
on dozens of countries are likely to stay in place rather than
be cut as part of continuing negotiations, Trade Representative
Jamieson Greer said.
The tariffs include a 35% duty on many goods from Canada,
50% for Brazil, 25% for India, 20% for Taiwan and 39% for
Switzerland.
Among the few gainers on the Nikkei, chip maker Socionext ( SOCNF )
rose the most, up 3.9%, followed by optics company Hoya
, which advanced 2.7%.
(Reporting by Rocky Swift in Tokyo; Editing by Subhranshu Sahu)