The latest remarks from the new US President are slowing down automobiles in the world’s third biggest economy.
Japan auto shares suffered a huge upset and closed on the negative zone on Tuesday as US President Donald J. Trump’s sharp turn towards protectionism and his move to withdraw in the Trans-Pacific Partnership deal pushed investors to resort to profit-taking.
Hit and Run
Shares of carmaker companies in the Tokyo Stock Exchange were all subdued yesterday as stocks received a what-seemed-to-be a hit and run from the Trump administration.
Mitsubishi motors settled 3.07% lower while Nissan Motors gave up 1.15% as the real estate tycoon pointed out unfair conditions exercised by Japan in its trading activities on high duties imposed to US goods including vehicles.
The country’s leading automaker, Toyota, also ended on a bearish note as it slid 1.66%, extending its loss since the end of last year at 4% while Mazda Motors, which tumbled 10% in the same period, closed the session 2.26% down.
As Trump slowly inched closer to the protectionist route, hopes for tax cuts, infrastructure spending and other policies promised during his campaign and before he took to office instantly diminished, with the first blow started with US breaking up with the TPP agreement.
The hard jab on Japan auto shares was also brought up by the jump in the country’s main currency as the Japanese yen closed above the 111 mark versus the struggling US dollar.
The broader Nikkei Stock Average registered its second losing streak as the benchmark dipped 0.55% at 18 787.99.