Introduction
The recent plunge in the stocks of Advantest and Mitsubishi UFJ is attributed to the introduction of new tariffs by the US government and the rising fear of a global recession. These developments have particularly negatively affected Asian financial and semiconductor values.
Background of Tariffs and Recession Risks
- Tariffs: The US government has introduced new tariffs affecting nearly 100 countries worldwide. Southeast Asian countries like Vietnam are particularly affected, facing tariff increases of over 45 percent. China is also subjected to significant duties, now raised to 104 percent of imports.
- Recession Risks: The fear of a global recession is growing, unsettling investors in Asian financial and semiconductor stocks. These sectors are particularly export-oriented and react sensitively to global economic downturns.
Impact on Advantest and Mitsubishi UFJ
- Advantest: The stock of semiconductor manufacturer Advantest fell by 7.71 percent to 5,195.00 yen in Tokyo. This is a sign of increasing export pressure on Japanese technology companies.
- Mitsubishi UFJ: Shares of the financial group Mitsubishi UFJ lost 4.92 percent to 1,577.00 yen. Investors fear that a global recession might curb lending.
Other Affected Companies and Markets
- Renesas Electronics: The semiconductor company recorded significant losses with a decline of 6.03 percent to 1,457.00 yen.
- Sumitomo Mitsui Financial Group: The bank shares fell by 4.46 percent to 3,040.00 yen.
- Nikkei 225: The index dropped by 3.64 percent to 31,810.92 points.
Global Market Reactions
The global markets are reacting nervously to the tariffs and recession fears. The DAX in Germany started weakly, and the gold price surged to a record high, indicating a flight into safe assets. Overall, these developments demonstrate that the introduction of new tariffs and the growing fear of recession have significant impacts on global markets, especially on export-oriented sectors like the semiconductor industry and the financial sector in Asia.