Japan's Nikkei falls on caution ahead of Trump tariff deadline
The Nikkei fell 0.46% to 39,628.41 by the midday break, after opening marginally lower. The broader Topix 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 US 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 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 US tariff policy. Yaskawa said it did not factor in the effect of US tariff policy when it made the forecast in April.
Yaskawa's peers SMC Corporation and Fanuc lost 7.34% and 3.23%, respectively.
Automakers fell, with Toyota Motor and Honda Motor dropping 1.11% and 1.63%, respectively. Nissan Motor slipped 4.35%, following a local media report that the automaker is in discussions with Taiwan's Foxconn about electric vehicle collaboration that could save its Oppama plant in Japan from closure.
Start-up investor SoftBank Group fell 1.64% to become the biggest drag for the Nikkei. Chip-equipment maker Tokyo Electron slipped 0.68%.
Staffing agency Recruit Holdings rose 2.26% to become the biggest support to the Nikkei.
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