Nikkei Falls Again Amid Strong Yen, Global Volatility

Japanese stocks declined for a second session, with the Nikkei 225 falling 1.3%, as a strengthening yen pressured exporters like Toyota and Suzuki. The yen’s appreciation was partly driven by global risk aversion following President Trump’s criticism of Federal Reserve Chair Jerome Powell and concerns about the Fed's independence, which triggered a selloff in US assets. Ongoing US-Japan trade talks and speculation that Japan may increase US agricultural imports as a concession further weighed on investor sentiment. Most sectors in Japan's Topix index fell, particularly automakers and financials, though domestically focused companies and the railway sector showed some gains. Meanwhile, Hong Kong stocks rose for a second day, contrasting with Japan’s losses. Despite the market headwinds, US equity futures pointed to a potential rebound after previous declines.