TOKYO (AP) — Global Stock Markets Decline
World equities experienced a generally downward trend on Monday, particularly in Japan, where stock indexes dropped following a significant increase in the yen against the U.S. dollar.
In early trading, France’s CAC40 saw a minor decline of nearly 0.2%, settling at 8,127.93. Meanwhile, Germany’s DAX edged up slightly by less than 0.1% to reach 24,881.34. The UK’s FTSE 100 index also fell by nearly 0.1%, ending at 10,138.76.
U.S. futures remained largely unchanged, reflecting ongoing uncertainty regarding U.S. tariff policies and other pressing matters. Specifically, S&P 500 futures ticked up by less than 0.1%, while Dow futures remained nearly static.
Heading into Asia’s Global Day, Japan’s Nikkei stock average fell by 1.8% due to sell-offs from major exporters like Toyota, bringing its total drop to 4.1% and finishing at 52,885.25.
A weaker currency is usually good for Japanese exporters, as it enhances the value of their overseas income. Recently, the dollar had been gaining against the yen, but it plummeted in the last few days after both Japanese and U.S. officials indicated potential intervention to bolster the yen.
While Treasury officials didn’t explicitly confirm any intervention actions, they assured they were closely monitoring currency volatility in collaboration with the U.S.
“Discussions regarding potential intervention have clearly been effective. Since Friday, the yen has significantly appreciated based on the belief that Japanese authorities (possibly with U.S. assistance) will take steps to stabilize it,” noted Ipek Ozkardeskaya, a senior analyst at Swissquote.
The dollar decreased from 155.01 yen to 153.88 yen, compared to last week’s level around 158 yen.
The euro saw a slight drop as well, falling from $1.1858 to $1.1851.
Across Asia, South Korea’s Kospi index diminished by 0.8%, landing at 4,949.59. Conversely, Hong Kong’s Hang Seng Index climbed marginally by less than 0.1%, reaching 26,765.52 after fluctuating earlier in the day. The Shanghai Composite Index, however, fell nearly 0.1%, closing at 4,132.60.
Markets in Australia, New Zealand, India, and Indonesia were shut for the day.
Investors are also closely watching upcoming earnings reports from various global companies, some of which might reflect negative impacts from recent U.S. tariff measures. A recent concern arose when U.S. President Trump warned that goods from Canada could face 100% customs duties if Canada proceeds with a free trade agreement with China. Canadian Prime Minister Mark Carney responded by stating that there are no current plans for such an agreement.
Beijing has been imposing hefty tariffs on Canadian goods, including a 100% tariff on electric vehicles and 25% on steel and aluminum. In retaliation, China has placed a 100% import tax on Canadian canola oil and meal, alongside a 25% tax on pork and seafood.
During a visit to China this month, Canada’s Prime Minister Carney distanced Canada from U.S. policies and agreed to eliminate tariffs on Chinese-made electric vehicles in exchange for lower tariffs on Canadian goods.
In other trading news on Monday, benchmark U.S. crude oil prices increased by 43 cents to $61.50 a barrel, while Brent crude climbed by 48 cents to $65.55 a barrel.
Gold prices rose by 2% to surpass $5,100 an ounce, and silver increased by 5.5%, achieving $109.81 an ounce. The values of these precious metals have surged recently as investors seek safer investment options.
