Asia-Pacific markets fell Tuesday as investors assessed renewed U.S. tariff threats tied to Greenland, raising concerns about escalating trade tensions with Europe.
In Japan, the Nikkei 225 tumbled 592.47 points, or 1.1%, to 52,991.40.
Investors are closely watching developments in Japanese markets after Prime Minister Sanae Takaichi said on Monday that she plans to dissolve parliament and call a snap election on Feb. 8.
Yields on Japan’s 40-year government bond rose to 4% for the first time.
Japan’s ruling coalition holds a one-seat Lower House majority following its formation in October, when Takaichi became prime minister after her predecessor resigned.
While the snap election would raise near-term political uncertainty, it could reportedly bring greater policy clarity if a government emerges with a stronger mandate.
Hong Kong’s Hang Seng index retreated 76.39 points, or 0.3%, to 26,487.51, after heightened regulatory scrutiny following a surge in trading activity.
Authorities have moved to rein in leverage after onshore market turnover hit record levels, driven in part by a rise in margin trading balances to an all-time high.
European states are reportedly discussing counter-tariffs and broader punitive economic measures in response to fresh tariff threats from President Donald Trump, further straining relations over Greenland.
Trump on Saturday announced that exports from eight European nations would start at 10% on Feb. 1 and climb to 25% by June 1 if talks fail to secure U.S. control of Greenland, a mineral-rich, semi-autonomous island under Danish control.
In other markets
The CSI 300 in Shanghai dropped 15.58 points, or 0.3%, to 4,718.88
In Korea, the Kospi lost 18.91 points, or 0.4%, to 4,885.75
In Taiwan, the Taiex hiked 120.7 points, or 0.4%, to 31,759.99.
In Singapore, the Straits Times Index deleted 6.88 points, or 0.1%. to 4,828.
In New Zealand, the NZX 50 dipped 6.36 points, or 0.1%, to 13,573.99
In Australia, the ASX 200 shed 58.65 points, or 0.7%, to 8,815.86.
