Japanese Markets Decline Amid Yen Rally and Weak Economic Data

Japanese markets declined for a third consecutive day as the yen strengthened amid geopolitical tensions over Greenland, prompting safe-haven demand. The Nikkei 225 fell about 0.6%, with semiconductor and auto stocks leading losses following recent gains. Weaker-than-expected Japanese machinery orders and industrial output also dampened sentiment, offsetting hopes for election-driven tax cuts. Meanwhile, government bond yields rose sharply ahead of a snap election and central bank policy meeting.