Fear of Trump tariffs jolts Japan's stock market

Investment strategies pivot to stocks with less U.S. exposure

20241108N Subaru Exports REUTERS

Newly manufactured Subaru vehicles await export at a port in Yokohama, Japan.

YUKA KAWAI, Nikkei staff writer

TOKYO -- Alarm is growing in Japan's equity market that the tariffs promised by returning U.S. President Donald Trump would disadvantage Japanese firms that export heavily to the U.S.

"We bought Mitsubishi Electric and similar stocks, and trimmed the allocation in automotive equities," said Shinya Nakao, fund manager at Norinchukin Zenkyoren Asset Management.

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