Asian stock markets mostly declined on Monday, led by sharp losses in Japan after the yen strengthened against the US dollar, hurting exporter stocks. Japan’s benchmark Nikkei 225 fell 1.8% to 52,870.15, weighed down by heavy selling in major exporters such as Toyota Motor Corp., whose shares dropped 4%.Markets across the region remained cautious amid currency volatility, uncertainty over US trade policies and ahead of a key US Federal Reserve policy decision later this week.
Yen rebound hits Japanese exporters
The sell-off in Japan came after the yen staged a strong rebound against the dollar in recent days. A weaker yen typically supports Japanese exporters by boosting the value of overseas earnings, but the recent currency move reversed that advantage.The dollar slipped to 154.27 yen from 155.01 yen, after trading near 158 yen last week, reported AP. The move followed comments from Japanese and US officials signalling close coordination on currency movements, fuelling expectations of possible intervention to support the yen.“Intervention chatter did the trick. Since Friday, the yen has staged a sharp rebound on expectations that Japanese authorities — possibly with US coordination — would step in,” Ipek Ozkardeskaya, senior analyst at Swissquote, was quoted as saying by news agency AP.
Mixed performance across Asian markets
Elsewhere in Asia, South Korea’s Kospi slipped 0.7% to 4,955.79. Hong Kong’s Hang Seng edged down less than 0.1% to 26,735.54, while China’s Shanghai Composite rose 0.1% to 4,141.31.Markets were closed in Australia, New Zealand, India and Indonesia due to holidays.
US futures dip amid tariff uncertainty
US stock futures edged lower, reflecting ongoing uncertainty around Washington’s tariff policies. Futures for both the S&P 500 and the Dow Jones Industrial Average were down 0.3%.Investor nerves were rattled by fresh trade tensions after US President Donald Trump threatened a 100% tariff on Canadian goods if Ottawa pursued a free trade agreement with China. Canadian Prime Minister Mark Carney pushed back, saying Canada had no plans for such a deal.
Wall Street ends week mixed
On Friday, US markets ended mixed. The S&P 500 inched up less than 0.1% to 6,915.61 but posted a second straight weekly loss. The Dow Jones Industrial Average fell 0.6% to 49,098.71, while the Nasdaq Composite gained 0.3% to 23,501.24.Most stocks declined, with Intel plunging 17% and weighing heavily on the broader market, as per AP.Investors are now looking to the US Federal Reserve’s policy meeting on Wednesday, where rates are widely expected to remain unchanged.
Commodities jump as investors seek safety
In commodities, oil prices edged higher. US benchmark crude rose 43 cents to $61.50 a barrel, while Brent crude gained 48 cents to $65.55 a barrel.Precious metals surged as investors sought safer assets. Gold climbed 2% to above $5,100 an ounce, while silver jumped 7% to $108.39 per ounce, extending gains seen in recent months.
