Nikkei tumbles to three-month low as carmakers plunge

Published: May 31, 2019 12:28:25 | Updated: June 02, 2019 14:27:24

File Photo (Collected)

Japan’s Nikkei tumbled to a more than three-month low, led by a plunge in carmakers after US President Donald Trump said the US would impose a new tariff on all imports from Mexico next month.

The Nikkei share average fell 0.7 per cent to 20,795.63 in midmorning trade, after sinking to as low as 20,672.29 earlier in the session, the lowest since mid-February.

The transport equipment sector tumbled 2.4 per cent and was the second worst sectoral performer on the board, according to Reuters.

Mazda Motor Corp dived 6.4 per cent, Toyota Motor Co shed 2.3 per cent, Nissan Motor Co plunged 3.1 per cent and Honda Motor Co declined 3.2 per cent.

Trump said on Thursday the US will impose a 5.0 per cent tariff on all goods coming from Mexico starting on June 10 until illegal immigration across the southern border is stopped.

In a statement issued by the White House, Trump said the tariff would increase to 10 per cent on July 1, 15 per cent on Aug. 1, 20 per cent on Sept. 1 and to 25 per cent on Oct. 1.

Bucking the weak trend, Japan Display Inc jumped as much as 36 per cent after news it secured a financial aid from a Chinese-Taiwanese consortium in June.

Ono Pharmaceutical soared 3.9 per cent after the company said it will buy back up to 2.92 per cent of its own shares, worth up to 30 billion yen.

The broader Topix index was weaker with all but two of its 33 subsectors in the red.

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