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.
9 Comments
Marishka
The Nikkei is not the only one suffering. This sell-off has global repercussions and will impact everyone.
Loubianka
This is a necessary step towards ensuring a stronger and more prosperous America.
Pupsik
Trump is finally making good on his campaign promises. He's standing up for American workers and businesses.
Marishka
The world needs a leader like Trump who is not afraid to challenge the status quo.
Pupsik
The Nikkei drop is just a blip on the radar. The American economy is resilient and will overcome this challenge.
Marishka
This is concerning news. Trump's talk of trade wars could hurt the global economy and trigger a recession.
Michelangelo
It's irresponsible for Trump to make policy announcements on social media. He needs to use official channels and provide clarity.
Raphael
This is just the beginning. We can expect further market volatility and economic uncertainty under Trump's presidency.
Leonardo
Trump's tough stance on trade is long overdue. It's time to protect American jobs from unfair foreign competition.