Japanese stocks fell in tense trading after U.S. President Donald Trump said tariff letters would begin to be sent out at noon Monday.

Trump also said he would impose an additional 10% tariff on any country that aligns with the "anti-American BRICS policies."

The Topix index fell 0.6% to 2,811.72 at the close in Tokyo.

The Nikkei fell 0.6% to 39,587.68.

Mitsubishi UFJ Financial Group Inc. was the biggest contributor to the Topix decline, down 2.3%. Exporters including electrical equipment and transportation equipment fell, while financials also fell amid economic uncertainty. Japan's chief trade negotiator Ryosei Akazawa held two phone meetings with Trade Minister Howard Lutnick and the two sides reaffirmed their respective positions on U.S. tariffs, according to a statement from Japan's Cabinet Secretariat. Separately, Prime Minister Shigeru Ishiba said Japan is ready to "take a firm stance" and defend its interests. He was speaking on Fuji TV's "Sunday News The Prime" program. Their comments came as a 10% across-the-board levy on Japanese shipments to the U.S. is set to revert to 24% on July 9 if no deal is reached. The country also faces a 25% levy on cars and auto parts and a 50% tariff on steel and aluminum. Ishiba has said he will push for zero tariffs on cars. Caution also prevails ahead of an upper house election scheduled for July 20.

Rieko Otsuka, a strategist at MCP Asset Management Japan, said that with the election approaching, the Japanese government cannot easily compromise on sectors such as autos and agriculture "in trade talks."

At home, investors will also be focused on earnings season that kicked off with Yaskawa Electric Corp. cutting its full-year operating earnings guidance. Yaskawa shares fell 10%, the biggest decline since April 7.

Source: newsmaker.id