Japanese shares plummeted on Monday after US President Donald Trump's tariffs on China raised concerns about a trade war, threatening global growth and fueling inflation.
The Nikkei 225 fell 2.66%, or 1,052.4 points, to close at 38,520.09.
Trump imposed tariffs of 25% on Mexican and most Canadian imports and 10% on Chinese goods, aiming to curb fentanyl and illegal immigration. Mexico and Canada vowed retaliation, while China pledged WTO action and countermeasures.
Meanwhile, a summary of the BoJ's policy meeting revealed that members are worried about the yen's long-term impact on households and businesses.
They noted that rising costs, yen depreciation, and investor expectations could lead to policy adjustments to prevent further weakness and financial overheating. Additional rate hikes may be necessary to stabilize the currency and contain inflation risks.
Japan's manufacturing sector contracted for a seventh consecutive month in January, with the PMI falling to 48.7 from 49.6, according to S&P Global.
Business confidence also hit its lowest point since December 2022, though firms remain optimistic about future demand. Input price inflation eased to a nine-month low.
On the corporate front, Insource Co (TYO:6200) secured contracts worth 1.01 billion yen to provide training and e-learning for officials in Hokkaido, Chiba, and Kanagawa, with the agreements spanning three to four years, according to a filing.
Stanley Electric (TYO:6923) reported a 37% rise in attributable profit to nearly 19 billion yen for the nine months ending Dec. 31. EPS rose to 120.18 yen, from 84.29 yen the previous year, while net sales grew 5.8% to 375.9 billion yen.
TS Tech Co (TYO:7313) has partnered with India's Krishna Group to launch a joint venture focused on developing automotive seats and parts, set to begin operations in April, catering to the growing demand from Indian automakers.
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