Japan’s Nikkei 225 share average fell sharply, extending losses for a third straight day as investors reacted to a combination of macroeconomic and geopolitical headwinds. The index slid about 1.4 % to around 53,159, while the broader Topix also declined amid widespread selling pressure.
A strengthening yen, which rallied to its strongest level in recent sessions on negative U.S. dollar moves and safe-haven demand, weighed on export-oriented stocks and dampened risk sentiment in Tokyo. At the same time, Japanese machinery orders data surprised to the downside, showing an 11 % month-on-month decline in November — a much deeper drop than economists had expected — signaling potential weakening in business investment.
Adding to the market’s cautious mood were geopolitical concerns linked to tensions over Greenland, which boosted demand for safe-haven assets and contributed to risk-off trading across Asian markets. Shared declines were seen in semiconductor and auto stocks, sectors that had previously helped drive gains for Japanese equities.
Investors are now closely watching upcoming domestic policy decisions and international developments, including potential fiscal or stimulus moves, as well as broader global market trends that could influence Japan’s trading trajectory in the near term.