The Trump effect is spreading across Asia. Japan’s Nikkei index was no exemption to the big blow brought up by the volatilities surrounding the new security policies of US President Donald J. Trump, which includes the end of the US refugee program and the ban for travelers from the seven major Muslim-countries.
Nikkei index slipped from its three-week high nabbed last Friday after it lost 0.8% in Monday trading and closed at 19 311.41 as investors showed jitters on the recent executive order inked by Trump that put an end to the entry of travelers from seven Muslim nations in the Middle East.
The controversial news sent negative sentiments to markets across the world that prompted investors to pull off profit-taking activities, to which Japan’s benchmark is very vulnerable at.
With a heavy disagreement over the latest Trump’s move, investors feared on what the order may present to global trade as Middle East plays major role in the international transaction for being a top producer of natural resources like oil.
Another driver on Monday’s drop of Japan’s benchmark was the surge of yen as weaker dollar pushed the currency higher trading at 114. 30 down from the weekly-high of 115.38 closed last Friday.
Under the bourse, insurers and banking costs contributed most losses, with Sompo Holdings giving up 1.7$ while Mitsubishi UFJ Financial Group tumbling by 1.5%.
Shares of Toshiba Corp, the leading automaker in the country, shed 5.8% after reports said that some trust banks will be suing the company for damages.