The current decline in the stocks of Advantest and Mitsubishi UFJ & Co. is primarily due to the imposition of new tariffs by U.S. President Trump and the growing fear of a global recession. These developments have affected stock markets worldwide, particularly in Asia, where financial and semiconductor stocks have come under significant pressure.
Background on Tariffs and Recession Risks
U.S. President Trump has imposed tariffs targeting nearly 100 countries. Southeast Asian countries like Vietnam are particularly affected, with tariff increases of more than 45 percent in some cases. China is also under significant pressure, facing duties on Chinese imports of 104 percent. Alongside this, fears of a global recession and uncertainty in the markets are increasing. This situation particularly affects cyclical stocks and export-oriented sectors such as the Japanese industry.
Impact on Asian Markets
The financial sector in Asia is suffering particularly. Bank stocks such as those of Mitsubishi UFJ and Sumitomo Mitsui Financial have recorded significant losses of up to 5.8 percent. In the semiconductor sector, companies like Advantest and Renesas are experiencing noticeable declines, with losses of up to 9.6 percent for Advantest. These developments are also reflected in the Nikkei 225, which saw a decline of up to 5.1 percent.
Global Market Reactions
U.S. stock exchanges are also showing negative reactions, with the DAX and S&P 500 coming under pressure. Other Asian markets, such as the Kospi in Seoul and the HSI in Hong Kong, are also experiencing declines, while the Shanghai Composite appears more resilient. Overall, these developments illustrate that global markets are heavily influenced by political decisions and economic uncertainties, leading to significant fluctuations in stock values.