Japanese stocks experienced a significant decline, with the market leading losses in Asia as sentiment was affected by U.S. President Donald Trump’s tariff policies. Shares of Seven & i Holdings plummeted by as much as 9.34% following a Yomiuri newspaper report indicating the company’s intention to reject a takeover offer from Canadian firm Alimentation Couche-Tard. Instead, Seven & i aims to enhance its corporate value independently. This drop follows a brief rise on Monday after news of Stephen Hayes Dacus’s potential appointment as president, replacing Ryuichi Isaka.
SoftBank Group also witnessed a sharp decline, with shares falling up to 5.81% after Nvidia’s overnight share drop of 8.69%. This reversed a slight gain seen earlier in the week. Reports suggest SoftBank CEO Masayoshi Son plans to borrow $16 billion for AI investments, with an additional $8 billion possibly being borrowed in early 2026. Last month, CNBC reported SoftBank was nearing a $40 billion investment in OpenAI, reflecting its commitment to artificial intelligence.
Trump addressed currency devaluation concerns, urging leaders in Japan and China not to devalue their currencies, arguing it disadvantages U.S. industries. The Japanese yen slightly weakened against the dollar, while the offshore Chinese yuan marginally strengthened.
Japan’s unemployment rate rose to 2.5% in January, slightly above forecasts, with the jobs-to-applicants ratio at 1.26, surpassing expectations.
— news from CNBC