(Updates with closing prices)
TOKYO, Feb 20 (Reuters) -
Japan's Nikkei share average fell over 1% to end at a
more-than two-week-low on Thursday, as automakers declined due
to a stronger yen, while investors assessed the potential impact
of U.S. President Donald Trump's latest tariff threat.
The Nikkei fell 1.24% to 38,678.04, its lowest close
since Feb. 3, while the broader Topix lost 1.18% at
2,734.6.
"The yen's strength against the dollar and uncertainties
about the U.S. tariff policy pushed Japanese equities lower,"
said Naoki Fujiwara, senior fund manager at Shinkin Asset
Management.
The yen hit its strongest level in over two months
on Thursday on bets on further rate hikes from the Bank of Japan
(BOJ), while concerns about new tariff threats from the U.S.
kept markets on edge.
A stronger Japanese currency tends to hurt exporters, as it
decreases the value of overseas profits in yen terms when firms
repatriate them to Japan.
Automakers lost ground, with Toyota Motor ( TM ) falling
1.63% to drag the Topix the most. Honda Motor ( HMC ) and
Nissan Motor ( NSANF ) slipped 1.37% and 2.83%, respectively.
Uncertainties about Trump's tariff plans also weighed on
automakers. Trump said on Wednesday he would announce tariffs
related to lumber, cars, semiconductors and pharmaceuticals
"over the next month or sooner."
Japanese banks also fell, snapping a rally driven by
expectations for a BOJ policy shift. Mitsubishi UFJ Financial
Group ( MUFG ) slipped 1.94% and Mizuho Financial Group ( MFG )
lost 1.93%.
Shiseido ( SSDOF ) gave up early gains to end 0.07% lower,
after a 13% surge in the previous session fuelled by news that
investment group Independent Franchise Partners is a shareholder
of the cosmetics maker.
Of more than 1,600 stocks trading on the Tokyo Stock
Exchange's prime market, 15% rose and 81% fell, with 2% ending
flat.