Global Market Turmoil: Nikkei Stock Index Tumbles After Trump’s Tariff Announcement
Market Reaction
The Nikkei Stock index plummeted more than 4 percent early Thursday after US President Donald Trump unveiled reciprocal tariffs, with Japan hit with a levy of 24 percent. The 225-issue Nikkei Stock Average fell 1,435.35 points, or 4.02 percent, from Wednesday to 34,290.52, according to Kyodo News.
Broader Market Impact
The broader Topix index also fell, down 106.08 points, or 4.00 percent, at 2,544.21. All sectors lost ground on the top-tier Prime Market, led by bank, securities house, and nonferrous metal issues.
Currency Market
The US dollar briefly dropped by more than 2 yen to the upper 147 yen range in Tokyo as the yen, seen as a safe-haven asset, attracted buying after Trump’s announcement. At 9 am (local time), the dollar fetched 147.88-89 yen compared with 149.30-40 yen in New York and 149.65-67 yen in Tokyo at 5 pm Wednesday.
Euro Exchange Rate
The euro was quoted at US$1.0902-0905 and 161.22-24 yen against US$1.0843-0853 and 162.10-20 yen in New York and US$1.0791-0792 and 161.49-53 yen in Tokyo late Wednesday afternoon.
Conclusion
The sudden market volatility following Trump’s tariff announcement highlights the growing uncertainty and anxiety in global financial markets. As the world’s leading economies continue to navigate the complexities of trade and tariffs, investors and policymakers alike must remain vigilant and adaptable to changing market conditions.
Frequently Asked Questions
Q: What triggered the Nikkei Stock index to plummet?
A: The Nikkei Stock index tumbled after US President Donald Trump unveiled reciprocal tariffs, with Japan hit with a levy of 24 percent.
Q: What was the impact on the broader market?
A: The broader Topix index fell 106.08 points, or 4.00 percent, at 2,544.21.
Q: How did the currency market react?
A: The US dollar briefly dropped by more than 2 yen to the upper 147 yen range in Tokyo as the yen, seen as a safe-haven asset, attracted buying after Trump’s announcement.
Q: What is the significance of the euro exchange rate?
A: The euro exchange rate provides a snapshot of the global economy’s health, with fluctuations affecting trade and investment decisions.