Japan debt deals pulled as tariffs hit deals outlook across Asia

[TOKYO] Three Japanese companies have postponed the sale of 100 billion yen (S$916.7 million) worth of yen-denominated bonds in the wake of global financial market volatility induced by US tariff announcements, according to a source and the companies.

Japan’s largest beer maker, Asahi, was due to issue 50 billion yen this month, but shelved the issuance due to market turmoil, a company spokesperson said.

Suntory deferred the issuance of 10 billion yen in subordinated bonds whose pricing was planned for this week, a spokesperson said.

Nissin also said it postponed a planned bond issuance, but declined to comment further. The noodle maker was due to issue bonds worth 40 billion yen, according a source familiar with the matter.

The three Japanese debt deals were shelved as financial markets grapple with the global fallout from US President Donald Trump’s tariffs, which investors fear could spark an all-out trade war and a deep recession.

Asian stocks on Tuesday (Apr 8) bounced off more than one-year lows and US stock futures rose, but investors remained on edge even as they hoped Washington might be willing to negotiate some of the aggressive tariffs that have unleashed turmoil in markets.

Since the fresh tariffs were unveiled last week, the yield on benchmark 10-year Japanese government bonds dived as much as 36 basis points to hit a three-month low of 1.125 per cent on Monday, but bounced back to 1.26 per cent in the latest session.

The market volatility is expected to have an impact on capital raising deals across Asia, as investors navigate the risk of tariffs increasing already-high geopolitical tensions between the US and China, according to bankers and lawyers that participate in the capital markets.

South Korea’s Hanwha Aerospace said on Tuesday it would reduce the size of its planned capital raising by one-third after it faced investor and regulatory pushback to the plan. REUTERS