FX.co ★ Japanese Shares Fall on Risk-Off Sentiment

Japanese stocks decreased on Monday, continuing their decline from recent record highs, as revived geopolitical and trade concerns impacted global risk sentiment. The Nikkei 225 dropped by 1.3% to approximately 53,250, while the more comprehensive Topix index decreased by 0.6% to 3,635. Sentiment took a hit following threats from U.S. President Donald Trump to impose new tariffs on eight European nations in an effort to gain control over Greenland, a move that drew criticism from European leaders. Domestically, investors are anticipating the Bank of Japan's policy decision this week, with widespread expectations that rates will remain steady. However, market participants are speculating on a potential policy change in June. Additionally, there is growing speculation that Prime Minister Sanae Takaichi might call a snap election next month to consolidate her power and further her expansionary fiscal policies. Among individual stocks, significant losses were observed among major companies such as Mitsubishi UFJ, which fell by 1.2%, Fujikura by 2.5%, SoftBank Group by 0.8%, Advantest by 1.5%, and Toyota Motor by 2.3%.