Japanese bank shares hammered as US tariffs spur fears about country's fragile recovery

Impact of U.S. Tariffs on Japanese Banks: Japanese banks experienced their largest weekly decline in over 40 years, with an 8% drop in banking stocks due to fears that U.S. tariffs could hinder Japan's fragile economic recovery and lead to a slowdown in growth.

Concerns Over Economic Growth and Inflation: Analysts predict that the ongoing trade tensions may reduce corporate activity and demand for loans, negatively affecting bank profits, while inflationary pressures complicate the Bank of Japan's ability to maintain current interest rates amidst potential economic downturns.