Japan’s Nikkei Stock Average Dips as Looming US Tariff Deadline Spurs Caution (UPDATE 1)

Reuters

12:34 JST, March 24, 2025 (updated at 16:20 JST)

TOKYO, March 24 (Reuters) – Japan’s Nikkei share average declined for a third straight session on Monday as uncertainty ahead of a looming deadline for implementing additional U.S. tariffs sapped investor appetite for riskier assets.

The Nikkei closed down 0.2% at 37,608.49, while the broader Topix shed 0.5% to sit at 2,790.88 after hitting an eight-month peak on Friday.

The Nikkei received some support as a portion of heavyweight shares saw some buying, with AI-focused startup investor SoftBank Group climbing 3% to offer the biggest lift.

U.S. President Donald Trump hinted that he would be flexible regarding a new round of tariffs set to go into effect on April 2, helping lift the S&P and Dow at the end of the week.

But the benchmark Nikkei index struggled to advance on the day, seesawing between gains and losses as investors took a cautious approach to the impending tariff threat.

Many important details regarding the latest tariffs are still unknown, keeping investors on edge, said Kazuo Kamitani, a strategist at Nomura Securities.

“There’s no way to predict it, so we have no choice but to wait for the announcement,” Kamitani said.

Major semiconductor-related shares dragged on Monday, tracking their U.S. peers after the Philadelphia SE Semiconductor Index ended nearly 1% lower on Friday.

Tokyo Electron slid 0.8% and Advantest declined 1.2%, while Screen Holdings tumbled 3.5% to become one of the biggest percentage losers on the Nikkei.

Among other big-name shares, Uniqlo parent firm Fast Retailing erased earlier gains to stumble 0.1%, and telecoms company KDDI gave up 1.3%. Seven & i Holdings rose 1.8%.

Sumitomo Realty & Development surged 10.5% after Bloomberg News reported Elliott Management Corp has built a significant stake in the Japanese real estate developer.