Japan's PM speaks with US President by phone over tariffs

Ishiba told Trump that they should seek cooperation that can benefit both nations, not tariffs, as he expressed concern that the US tariffs could weaken the investment capacity of Japanese companies, Kyodo News reported.

The call was the first interaction between the two leaders since Trump rolled out a new set of levies last Wednesday, imposing a 10-per cent baseline tariff on imports from all trading partners and higher rates on certain ones.

With Japan being slapped with a 24-per cent levy, making it one of the hardest-hit nations and regions on the list, Tokyo has been lobbying for an exemption.

Following their phone call, Ishiba told reporters he and Trump agreed that the issue should be further discussed by their ministers, Xinhua news agency reported.

Ishiba also said he will visit the United States at the best time.

Japanese officials have repeatedly asked the US to exempt it from the tariff measures, stressing the country's position as the largest foreign direct investor in the US for five years in a row through 2023.

Tokyo stocks plunged Monday, with the benchmark Nikkei index suffering its third-largest point drop on record, amid a global market rout as fears of an all-out trade war and a global economic recession triggered by the US tariffs hike intensified.

Japan's benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, ended down 2,644.00 points, or 7.83 per cent, from Friday at 31,136.58, its lowest closing level since October 31, 2023.

The broader Topix index, meanwhile, finished 193.40 points, or 7.79 per cent, lower at 2,288.66.

Panic selling gripped the stock market following Wall Street declines Friday as sweeping US "reciprocal tariffs" ignited fears of a trade war and a worsening global economy.

The Nikkei's tumble was the biggest since the 3,836-point drop registered on October 20, 1987, the day after the Black Monday stock market crash.

The benchmark index at one point shed nearly 3,000 points, falling below the key 31,000 line, with heavyweight technology issues pressured after US President Donald Trump said last week he plans to announce tariffs on semiconductors and pharmaceuticals soon, analysts said.