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Japan's Nikkei ends at over 2-week low on stronger yen, US tariff worries
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Japan's Nikkei ends at over 2-week low on stronger yen, US tariff worries
Feb 19, 2025 11:27 PM

(Updates with closing prices)

TOKYO, Feb 20 (Reuters) -

Japan's Nikkei share average fell over 1% to end at a

more-than two-week-low on Thursday, as automakers declined due

to a stronger yen, while investors assessed the potential impact

of U.S. President Donald Trump's latest tariff threat.

The Nikkei fell 1.24% to 38,678.04, its lowest close

since Feb. 3, while the broader Topix lost 1.18% at

2,734.6.

"The yen's strength against the dollar and uncertainties

about the U.S. tariff policy pushed Japanese equities lower,"

said Naoki Fujiwara, senior fund manager at Shinkin Asset

Management.

The yen hit its strongest level in over two months

on Thursday on bets on further rate hikes from the Bank of Japan

(BOJ), while concerns about new tariff threats from the U.S.

kept markets on edge.

A stronger Japanese currency tends to hurt exporters, as it

decreases the value of overseas profits in yen terms when firms

repatriate them to Japan.

Automakers lost ground, with Toyota Motor ( TM ) falling

1.63% to drag the Topix the most. Honda Motor ( HMC ) and

Nissan Motor ( NSANF ) slipped 1.37% and 2.83%, respectively.

Uncertainties about Trump's tariff plans also weighed on

automakers. Trump said on Wednesday he would announce tariffs

related to lumber, cars, semiconductors and pharmaceuticals

"over the next month or sooner."

Japanese banks also fell, snapping a rally driven by

expectations for a BOJ policy shift. Mitsubishi UFJ Financial

Group ( MUFG ) slipped 1.94% and Mizuho Financial Group ( MFG )

lost 1.93%.

Shiseido ( SSDOF ) gave up early gains to end 0.07% lower,

after a 13% surge in the previous session fuelled by news that

investment group Independent Franchise Partners is a shareholder

of the cosmetics maker.

Of more than 1,600 stocks trading on the Tokyo Stock

Exchange's prime market, 15% rose and 81% fell, with 2% ending

flat.

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