Nikkei Declines for Third Straight Session Amid Uncertainty

Japan’s Nikkei 225 index fell for the third consecutive session on Monday as investors exercised caution ahead of the looming deadline for additional U.S. tariffs. The benchmark index closed 0.2% lower at 37,608.49, while the broader Topix shed 0.5% to settle at 2,790.88, retreating from its eight-month peak recorded on Friday.

Despite the overall decline, select heavyweight stocks helped limit deeper losses, with SoftBank Group climbing 3% on renewed buying interest in AI-focused investments.

US Tariff Uncertainty Weighs on Global Sentiment

Investor sentiment remained subdued as markets awaited more clarity on the new round of U.S. tariffs, set to take effect on April 2. While President Donald Trump hinted at some flexibility regarding the tariffs, uncertainty over the scope and impact of the measures kept traders on edge.

“There’s no way to predict the specifics of the tariffs yet, so we have no choice but to wait for the official announcement,” said Kazuo Kamitani, a strategist at Nomura Securities. The uncertainty dampened risk appetite, leading to volatile trading throughout the session.

Semiconductor Stocks Under Pressure Amid Global Decline

Japanese semiconductor-related stocks tracked declines in their U.S. counterparts, following a 0.9% drop in the Philadelphia Semiconductor Index on Friday. Key Japanese chipmakers faced losses:

Tokyo Electron fell 0.8%
Advantest declined 1.2%
Screen Holdings tumbled 3.5%, making it one of the biggest percentage losers on the Nikkei

The selloff in semiconductor stocks reflects broader global concerns about the sector, including supply chain disruptions, potential U.S. tariff impacts, and shifting demand cycles.

Mixed Performance Among Market Heavyweights

Aside from semiconductors, some of Japan’s largest corporations experienced mixed trading:

Fast Retailing (Uniqlo’s parent company) erased early gains to close 0.1% lower
KDDI, a major telecom provider, declined 1.3%
Seven & i Holdings posted a 1.8% gain, bucking the downward trend

Sumitomo Realty & Development Surges on Elliott Management Stake

In one of the biggest moves of the day, Sumitomo Realty & Development soared 10.5% after Bloomberg News reported that Elliott Management Corp had acquired a significant stake in the Japanese real estate developer. The news fueled strong speculative buying, with investors anticipating potential strategic changes or shareholder activism by Elliott Management.