(Updates with details and closing prices)
TOKYO, April 9 (Reuters) - Japan's Nikkei share average
slipped on Wednesday, ending nearly 4% lower in a broad
sell-off, as traders gauged concerns over a potential economic
slowdown amid an intensifying trade war between the United
States and China.
The Nikkei share average fell 3.9% to close at
31,714.03, while the broader Topix dropped 3.4% to
2,349.33.
The index saw significant volatility this week, closing 6%
higher on Tuesday after a 7.8% slump on Monday pushed it to a
1-1/2-year low.
The Nikkei extended its losses to 5.3% earlier in the day
after U.S. President Donald Trump's "reciprocal" tariffs on
dozens of countries took effect, including massive 104% duties
on Chinese goods, deepening his global trade war even as he
prepared for negotiations with some nations.
The deepening losses of the Nikkei index were associated
with a surge of U.S. Treasury yields in Asia trade, in a sign
investors are selling even their safest assets amid the rout,
said Shuutarou Yasuda, a market analyst at Tokai Tokyo
Intelligence Laboratory.
"The markets are now in panic, and any big move could
drive a sell-off of risk assets," said Yasuda.
In Japan, technology stocks drove the losses on Nikkei, with
Advantest ( ADTTF ) and Tokyo Electron ( TOELF ) falling 7.8% and
6%, respectively.
Technology investor SoftBank Group fell 7.2%.
The yen's gain against the dollar pressured exporters,
with the Japanese currency rising as high as 144.865
yen to the greenback due to safe-haven bets.
A stronger Japanese currency tends to hurt shares of
exporters, as it decreases the value of overseas profits in yen
terms when firms repatriate them to Japan.
"Investors are uncertain about how much further the
Nikkei could fall. They are trying to find where the bottom is,"
said Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust
Asset Management.
Of the more than 1,600 stocks trading on the Tokyo Stock
Exchange's prime market, 89% saw declines, while 9% posted
gains.