Asian Currencies Mixed as Yen Rallies on BOJ Bets 
Canada Retaliatory Tariffs on U.S. Goods Take Effect 
China Boosts Gold Reserves by 650,000 Ounces as Prices Rally 
Iraq Seeks 6 Million Bpd OPEC+ Oil Quota 
China Inflation Accelerates in August as CPI, PPI Rise 
China to Inject $45 Billion Into State Financial Institutions 
Iran Threatens Gulf Energy Assets as U.S. Tensions Escalate 
Oil Prices Climb as Iran Threatens Gulf Energy Infrastructure 
Japan GDP Growth Beats Forecast, Boosting BOJ Rate Hike Bets 
US Bans Canadian Alcohol, Motorcycles as Trade War Escalates 
Oil Prices Rally as Brent Nears $100 on U.S.-Iran Escalation 
Japanese Yen Nears Seven-Month High as Oil Approaches $100 
Japan, U.S. Stay Aligned on Yen as Currency Surges 
Asian Stocks Mixed as AI Chip Rally Meets Oil Surge 
Brent Oil Tops $100 as Middle East Conflict Threatens Supply 
Iran Plans New Gulf Restricted Zone as Hormuz Tensions Push Oil Higher 
ECB Set for September Rate Hike as Energy Prices Fuel Inflation 
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Japan’s Nikkei 225 fell 1.8% to 37,096.51 by midday Tuesday, its lowest level since September 18, as investors grew cautious ahead of new U.S. tariffs on Canada, Mexico, and China. The Topix index dropped 1.2% to 2,696.99, with market sentiment further dampened by a stronger yen and underperformance in exporters and tech stocks.
The yen strengthened to its highest level since early December after U.S. President Donald Trump warned Japan and China against currency devaluation, calling it unfair to the U.S. The stronger yen weighed on major exporters like Toyota Motor (NYSE: TM), down 2.2%, while Fast Retailing fell 2.6% and SoftBank Group (TYO: 9984) slid 5.2%. Seven & i Holdings tumbled 10.2%, adding to the market downturn.
Technology stocks struggled as well, with Advantest plunging 6.2% amid concerns over U.S. growth and tariff impacts. Analysts noted similarities to last summer’s market turmoil, when the Nikkei plunged due to a rising yen and U.S. recession fears.
Wall Street’s major indexes closed sharply lower Monday after Trump announced 25% tariffs on Canadian and Mexican imports, alongside an additional 10% tariff on Chinese goods. The impact rippled through global markets, fueling volatility in Japan.
The Nikkei Volatility Index surged to 31.6, its highest since early November, following the U.S. presidential election. Analysts suggest Japan’s policymakers may remain hawkish on yen movements, limiting hopes for intervention.
As trade tensions escalate and economic uncertainty looms, investors remain wary of further downside risks in Japan’s stock market.
