On November 26, the Nikkei 225 index experienced a sharp decline, dropping more than 700 points at one stage, as worries mounted over President-elect Donald Trump's potential protectionist trade measures. By the end of the trading day, the index settled at 38,442.00, reflecting a decrease of 338.14 points, or 0.87 percent, compared to the previous day's close.

The sell-off in the market was primarily fueled by Trump's posts on social media, where he hinted at imposing tariffs of 10 percent on Chinese goods and 25 percent on imports from Canada and Mexico following his inauguration in January. This prompted the Tokyo Stock Exchange to open with a significant downturn, characterized by widespread selling across various sectors.

Among the hardest impacted were stocks related to semiconductors, notably Advantest Corp. and Tokyo Electron Ltd., which are crucial to the performance of the Nikkei index. Despite the turmoil, Masahiro Ichikawa, the chief market strategist at Sumitomo Mitsui DS Asset Management Co., pointed out that the market's response to Trump's announcements seemed relatively subdued. He remarked that investors have become familiar with Trump's negotiation tactics and that any future fluctuations stemming from his trade policies are expected to remain within a predictable framework, as similar instances have occurred before.