Japan’s Nikkei average dropped more than 1% in early trade on Friday, as automakers tracked losses of their Wall Street counterparts following U.S. President Donald Trump’s announcement of trade tariffs.
As of 0017 GMT, the Nikkei was down 1.5% at 37,222.21.
The index was pulled down by a majority of stocks going ex-dividend, resulting in a loss of around 300 points, strategists said.
The broader Topix slipped 1.63% to 2,769.7.
Automakers Toyota Motor slumped 4.47%, making it the worst performer in the Nikkei, while Honda Motor dropped 4.26%. Both followed the overnight declines of General Motors and Ford.
Earlier this week, Trump declared his plan to implement a 25% tariff on imported cars and light trucks, effective from April 3, while the duty on auto parts begins on May 3. Investors also braced for a wave of reciprocal tariffs that Trump plans to unveil on Wednesday, although he has hinted there may be room for flexibility.
