Nikkei Index Drops 1.47% Amid 'US Steel Acquisition Failure and Trump'

Japan's representative stock index, the Nikkei 225 average, closed down 1.47% on the first trading day of the new year, January 6, according to local media such as NHK on the same day.

According to reports, the Nikkei index closed at 39,307, down 1.47% (587 points) compared to the previous trading day on December 30. Although there was an upward trend in the early session, selling pressure intensified due to concerns about the global economic outlook, causing the index to fall more than 500 points.

The background for the stock price decline on the first trading day of the new year is attributed to the failure of Nippon Steel's acquisition of US Steel in the United States. Earlier, on January 3 (local time), U.S. President Joe Biden disapproved Nippon Steel's acquisition of US Steel.

Accordingly, concerns spread in the Tokyo stock market that if the second Trump administration, which will launch on the 20th, implements policies such as universal tariffs to protect domestic industries, the burden on export companies could increase.

Looking at the stocks with large declines that day, many were companies with a high proportion of sales in the U.S. Toyota Motor fell 4.3%, and Kikkoman, a soy sauce company with about half of its sales in North America, also dropped 4.0%.