TOKYO: Tokyo shares tumbled Monday morning with exporters hit by a pick-up in the yen as investors moved into the safe-haven unit owing to uncertainty after Donald Trump kicked off his presidency.
After being sworn in as the 45th president of the United States on Friday, Trump promised to build infrastructure, such as bridges and roads, and boost employment, aspects of his agenda the market likes.
But he also adopted a harsh anti-establishment tone throughout his speech, suggesting a tough line on trade that has worried economists.
He again supplied few concrete details on his plans to ramp up the world’s top economy but on Sunday vowed to start renegotiating the North American Free-Trade Agreement during upcoming talks with Mexico and Canada
“If the market starts to focus more on concerns over Trump’s protectionist aspects, the yen is likely to temporarily shift toward strength,” Shoji Hirakawa, chief global strategist at Tokai Tokyo Research Institute, told Bloomberg News.
In Tokyo, the dollar was at 113.60 yen, sharply down from 114.60 yen in New York late Friday.
