Japan’s stock market declined as machinery orders plummeted and risk aversion sentiment intensified.

Gelonghui, January 19 | On Monday, Japan’s Nikkei 225 Index fell for the third consecutive trading day due to geopolitical tensions surrounding Greenland prompting a safe-haven rally in the yen, while economic data unexpectedly weakened. The Nikkei 225 Index dropped by 0.6%, closing at 53,583.57 points. The broader Topix Index fell by 0.1%, ending at 3,656.40 points. A weakening of the dollar, driven by threats from U.S. President Trump to impose tariffs on Europe, pushed the yen to its highest level since January 9. Japan’s machine orders for November declined by 11% month-on-month, more than double the forecast predicted by economists in a Reuters survey. Nomura Securities strategist Wataru Akiyama stated: “Semiconductor-related stocks, which had previously fueled the recent rise in Japan’s stock market, along with auto stocks that benefited from a weaker yen, experienced significant declines today.” “The sharp drop in machinery orders appears to be one factor impacting the stock market.”