Japanese equities opened lower on Monday, as renewed strength in the yen weighed heavily on exporter sentiment and capped early risk appetite. The currency’s appreciation against the US dollar emerged as the dominant driver of early trading decisions.
Exporters under pressure
Automotive and electronics stocks led declines at the open, as investors recalibrated earnings expectations in response to less favourable exchange rates. A stronger yen typically reduces the competitiveness of Japanese exports and compresses foreign-derived revenues.
Domestic sectors offer limited support
Defensive domestic sectors, including utilities and healthcare, provided limited downside protection but were insufficient to offset broader selling pressure in globally exposed names.
Policy sensitivity remains high
Markets remained highly sensitive to central bank expectations, with investors alert to any signals regarding currency intervention or future interest-rate guidance. The interplay between monetary policy and foreign exchange markets continues to shape equity positioning.
Regional implications
Japan’s weaker open set a cautious tone across Asia, particularly in markets with significant export exposure.
Newshub Editorial in Asia – 26 January 2026
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