Japan’s Nikkei Ekes out Gain in Countdown to Trump Tariffs

Reuters

16:34 JST, April 2, 2025

TOKYO, April 2 (Reuters) – Japan’s Nikkei share average ended Wednesday with a small rise after swinging between gains and losses, as traders positioned for U.S. President Donald Trump’s tariffs.

The Nikkei finished up 0.28% at 35,725.87. Earlier, it had slipped 0.56% to 35,426.33, its lowest since September 11, after opening the day higher.

The broader Topix also opened higher but quickly reversed direction to sink as much as 1.17%. It ended down 0.43%.

The Nikkei performed relatively better as some of its most heavily-weighted stocks gained, including Uniqlo-owner Fast Retailing 9983.T, up 3.74%, and chip-testing equipment maker Advantest 6857.T, jumping 2.55%. Both stocks were rebounding off multi-month lows reached earlier this week.

Energy shares were under particular pressure on the Tokyo bourse, after crude oil eased off of five-month highs overnight. Electric and gas stocks .IEPNG.T dropped 2.75% and miners .IMING.T, including oil explorers, declined 2.2%.

For weeks, Trump has touted April 2 as “Liberation Day,” which will see dramatic new duties that could upend the global trade system. A White House announcement is scheduled for 2000 GMT.

The White House said on Tuesday that reciprocal tariffs will take effect immediately after Trump announces them. The 25% tariff on auto imports will take effect on April 3.

Automakers and parts suppliers .ITEQP.T formed the second-best performers among the Tokyo Stock Exchange’s 33 industry sub-indexes on Wednesday, advancing 0.86%, but remained not far from a nearly four-month low hit on Monday at the end of a steep three-day dive.

“It’s very difficult to read what will happen, that’s the situation we’re in,” Nomura Securities equities strategist Kazuo Kamitani said.

“We need to pay close attention to the news flow out of the U.S.,” and if it is bad, the Nikkei could drop to around the 35,000 level, which should provide a near-term floor, Kamitani said.