Japanese stocks opened lower on Tuesday, as the market remained clouded by uncertainty surrounding US-Europe trade relations, which have escalated due to the Greenland issue. Risk-off sentiment has made investors more cautious, especially in sectors sensitive to global trade.

The Nikkei Stock Average fell 1.3% to 52,888.66, with the greatest pressure coming from automotive and electronics stocks. These two sectors are typically the quickest to be impacted when the market begins to anticipate export and supply chain disruptions.

On the stock market, Toyota Motor fell 2.0%, while Panasonic Holdings fell 2.8%. The weakness in these major stocks also dragged down the overall index due to their strong presence in the Japanese market.

In the currency market, USD/JPY was at 158.13, slightly higher than the 157.88 level at the Tokyo Stock Exchange close the previous day. Meanwhile, the yield on the 10-year Japanese government bond rose 3 basis points to 2.300%, indicating that the market is also pricing in risks and future policies.

Investors are now monitoring two key issues: the latest developments in Greenland tensions, which could impact global trade, and Prime Minister Sanae Takaichi's steps to support the economy ahead of the early February elections. The direction of fiscal policy and stimulus strategy will be key, as they could influence the yen, bonds, and Japanese stock movements in the coming weeks. (asd) [sma]

Source : Newsmaker.id