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.


Australian Consumer Sentiment Slumps in Early December as Inflation Fears Resurface
South Korea Extends Bond Market Stabilization Measures Amid Rising Financial Risks
Gold and Silver Prices Dip as Markets Await Key U.S. Economic Data
Dollar Struggles as Markets Eye Key Central Bank Decisions and Global Rate Outlooks
Asian Currencies Trade Sideways as Dollar Weakens Ahead of Key U.S. Data
Oil Prices Rebound as U.S.-Venezuela Tensions Offset Oversupply Concerns
Fed Rate Cut Signals Balance Between Inflation and Jobs, Says Mary Daly
Oil Prices Slip in Asia as 2026 Supply Glut Fears and Russia-Ukraine Talks Weigh on Markets
New Zealand Budget Outlook Shows Prolonged Deficits Despite Economic Recovery Hopes
Bank of Korea Downplays Liquidity’s Role in Weak Won and Housing Price Surge
Asian Technology and Chipmaking Stocks Slide as AI Spending Concerns Shake Markets
Japan PMI Data Signals Manufacturing Stabilization as Services Continue to Drive Growth
Asian Stocks Slide as Central Bank Decisions and Key Data Keep Investors Cautious
China’s November Economic Data Signals Slowing Industrial Output and Weak Consumer Demand
U.S. Dollar Slips Near Two-Month Low as Markets Await Key Jobs Data and Central Bank Decisions
S&P 500 Slides as AI Chip Stocks Tumble, Cooling Tech Rally
Japan Business Sentiment Hits Four-Year High, Boosting Expectations of BOJ Rate Hike 



