"Greenland Crisis" Shakes Tokyo Markets: Nikkei Falls for Third Day as Investors Seek Safe Haven in Yen

Japan’s Nikkei index dropped 0.6% on Monday, marking its third consecutive day of losses to close at 53,583.57. The decline was largely fueled by geopolitical jitters following President Donald Trump’s latest tariff threats against Europe over the Greenland dispute. This prompted a global flight to safety, boosting the Yen to its highest level since January 9, which in turn weighed heavily on Japanese exporters and automakers.

Domestic economic data added to the gloom, with machinery orders plunging 11% in November—more than double the expected decline. Experts at Nomura Securities noted that the sell-off hit semiconductor and auto stocks the hardest. Investors are now bracing for a volatile week as Prime Minister Sanae Takaichi prepares to dissolve parliament for snap elections, while the Bank of Japan convenes to decide on future monetary policy.