“The tariff was much higher than expected, so the damage to business performance is likely to be greater than initially thought,” said Ikuo Mitsui, a fund manager at Aizawa Securities Co. “The risk-off mood prevails.”
Japan’s benchmark Topix index slid to enter a technical correction as global investors dumped riskier assets on concern Donald Trump’s tariffs will slow the world economy.
Exporters of electronics and automobiles were among the heaviest drags on the Topix as the yen headed toward its strongest level against the dollar since October. Banks slid more than 11% during the day as Trump’s tariffs cast doubts over the Bank of Japan’s willingness to raise interest rates.
