Japan's Nikkei Stock Average Falls on Caution Ahead of Trump Tariff Deadline
The Nikkei .N225 fell 0.46% to 39,628.41 by the midday break, after opening marginally lower.
The broader Topix .TOPX fell 0.45% to 2,815.36.
'Investors turned bearish when they saw a small decline in the Nikkei and sold more stocks,' said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.
'The market was awaiting any details of the U.S. tariffs. Investors wanted to stay away from buying stocks until the details became clear,' he said.
The United States is close to finalizing several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9, Trump said on Sunday, with the higher rates scheduled to take effect on August 1.
Yaskawa Electric 6506.T tanked 8.81% to become the biggest percentage loser on the Nikkei. The machinery maker on Friday cut its annual operating profit forecast, citing uncertainties about the demand outlook due to the effect of U.S. tariff policy.
Yaskawa said it did not factor in the effect of U.S. tariff policy when it made the forecast in April.
Yaskawa's peers SMC Corporation 6723.T and Fanuc 6954.T lost 7.34% and 3.23%, respectively.
Automakers fell, with Toyota Motor 7203.T and Honda Motor 7267.T dropping 1.11% and 1.63%, respectively.
Nissan Motor 7201.T slipped 4.35%, following a local media report that the automaker is in discussions with Taiwan's Foxconn 2317.TW about electric vehicle collaboration that could save its Oppama plant in Japan from closure.
Start-up investor SoftBank Group 9984.T fell 1.64% to become the biggest drag for the Nikkei. Chip-equipment maker Tokyo Electron 8035.T slipped 0.68%.
Staffing agency Recruit Holdings 6098.T rose 2.26% to become the biggest support to the Nikkei.
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