INSUBCONTINENT EXCLUSIVE:
TOKYO: Japan's Nikkei average dropped on Tuesday, as concerns about global trade revived after US President Donald Trump slapped tariffs
on Brazil and Argentina, while weak US manufacturing data also dented sentiment.
The Nikkei share average closed down 0.64 per cent at
It had fallen as much as 1.46 per cent, to 23,186.84, but managed to end the day above its 25-day moving average of 23,249, a key technical
level.
On Monday, Trump said he would impose tariffs on steel and aluminium imports from Brazil and Argentina, raising worries he could also
re-escalate trade tensions with China.
"Should Trump impose the so-called fourth tariffs on China on Dec
15, it would be a completely different scenario from what most investors are expecting," said Masayuki Kubota, chief strategist at Rakuten
Securities.
Data from the US Institute for Supply Management (ISM) showed the US manufacturing sector contracted for a fourth straight month
in November, hurting market optimism sparked by a strong manufacturing survey reading from China on Monday.
China banned US military ships
and aircraft from visiting Hong Kong and slapped sanctions on several US non-government bodies in response to US legislation passed last
week supporting protests in the Asian financial hub.
Investors have hoped that, as part of a "phase one" trade deal, Washington would avoid
imposing an additional tariff of 15 per cent on about $156 billion worth of Chinese products on Dec
15.
The broader Topix shed 0.45 per cent to 1,706.73
A wide range of shares dropped on the main board, with decliners outnumbering gainers by a ratio of 74 to 26.
Decliners included many
East Japan Railways fell 1.3 per cent, Kikkoman Corp dropped 3.4 per cent and Nisshin Group shed 2.7 per cent.
Pigeon tumbled 13.8 per cent
after the baby goods maker slashed its annual outlook following weak quarterly results.
Astellas Pharma fell 1.1 per cent after the
drugmaker agreed to buy Audentes Therapeutics Inc for about $3 billion in cash, in a quest to make genetic medicines a key growth
area.
Nomura Holdings briefly hit a 1-1/2-year high after Japan's top securities brokerage firm and investment bank picked joint
operations chief Kentaro Okuda to lead its turnaround.
But it failed to retain gains, ending down 0.3 per cent.
Shares of Nintendo rose 2.7
per cent to a 1-1/2-year high, on hopes of brisk holiday sales