Foreign Sell-offs Impact Japanese Market Amid Tariff Tensions

Foreign investors continued to sell Japanese stocks for a ninth week due to U.S. tariff concerns. Trump's new tariffs impact Japan's auto industry, causing stock withdrawals and a Nikkei drop. Japanese investors shifted to foreign stocks but sold off foreign debt.

Foreign investors have continued to offload Japanese stocks for nine weeks running, marking the most extended selling duration in three years. This comes amid rising concerns over U.S. tariffs which could potentially disrupt Japanese exports.

President Trump announced a surprising 24% tariff on Japanese goods, in addition to a prior 25% tariff on auto imports effective April 3, posing a significant impact on Japan's auto industry. Data from Japan's Ministry of Finance indicates net sales of 450.4 billion yen in Japanese stocks by foreigners this week.

The Nikkei hit an eight-month low, and predictions of further decline loom as yen appreciation weighs on exports. Despite this, Japanese investors are pivoting towards foreign stocks, marking a significant shift in investment strategies.

(With inputs from agencies.)