The 225-issue Nikkei stock average retreated Friday after the U.S. market resumed its slide fueled by U.S. tariff worries the previous day.
The index for major stocks on the Tokyo Stock Exchange closed at 33,585.58, down 1,023.42 points, or 2.95%, from Thursday. It lost over 1,900 points during morning trading before narrowing its losses somewhat as investors scooped up bargains.
Tokyo stocks tracked Wall Street lower on worries over a trade war between the United States and China, after Washington maintained high tariffs on the Asian country despite winding back what it calls reciprocal levies on most other trading partners.
"Many uncertainties remain, such as the outlook for tariff negotiations" over the frozen tariffs, an official at a major securities house said.
Although stocks rallied the previous day on news that Washington was suspending some of its reciprocal tariffs, the increase in U.S. levies on China to 145% reignited concerns about the economy and corporate profits.
The yen's rapid strengthening was also behind the renewed selling pressure in the Tokyo stock market.
The dollar briefly dropped below ¥143 in Tokyo trading for the first time in six months, after sliding in U.S. trading overnight on concerns about the U.S.-China trade war. The greenback stood at ¥143.88 at 4 p.m., down from ¥146.26 at 5 p.m. Thursday.
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