In Tokyo, Asian stock markets largely faced declines on Monday, with Japan’s leading index, the Nikkei 225, experiencing a significant drop. This downturn was primarily influenced by the yen’s surge against the U.S. dollar, which impacted major exporters.

The Nikkei 225 fell by 1.9%, closing at 52,812.45. The decline was notably driven by a sell-off in shares of prominent exporters such as Toyota Motor Corp., whose stock decreased by 3.2%.

Typically, a weaker yen benefits Japanese exporters by enhancing the value of their overseas profits. However, recent developments have seen the yen strengthen against the dollar. This shift comes after authorities in Japan and the United States hinted at possible intervention to bolster the yen.

Consequently, the dollar dropped to 154.26 yen from the previous 155.01 yen, a notable change from its position around 158 yen just last week.

Meanwhile, the euro saw a slight increase, rising to $1.1866 from $1.1858.

Elsewhere in Asia, South Korea’s Kospi dipped 0.6% to 4,961.58.

Hong Kong’s Hang Seng inched down 0.1% to 26,722.89, while the Shanghai Composite added 0.1% to 4,141.10.

Markets were closed in Australia, New Zealand, India and Indonesia.

U.S. futures edged lower on persisting uncertainty over U.S. tariff policies, among other issues.

The futures for the S&P 500 and the Dow Jones Industrial Average were down 0.3%.

A threat by U.S. President Donald Trump to impose a 100% tariff on goods from Canada was countered by Canadian Prime Minister Mark Carney. Trump had warned he might hike tariffs if Canada signed a free trade deal with China. Carney said Canada had no plans for such a deal.

In 2024, Canada mirrored the United States by putting a 100% tariff on electric vehicles from Beijing and a 25% tariff on steel and aluminum. China had responded by imposing 100% import taxes on Canadian canola oil and meal and 25% on pork and seafood.

Breaking with the United States this month during a visit to China, Carney cut its 100% tariff on Chinese electric cars in return for lower tariffs on those Canadian products.

On Friday, the S&P 500 edged up less than 0.1% to 6,915.61. But it still notched a second straight week with a modest loss. The Dow Jones Industrial Average dipped 0.6% to 49,098.71. The Nasdaq composite rose 0.3% to 23,501.24.

The majority of stocks on Wall Street fell, and Intel weighed on the market after tumbling 17%.

The next chance for the U.S. Federal Reserve to move the short-term interest rate it controls will come on Wednesday. The market expectation is that it will hold steady.

In other dealings early Monday, benchmark U.S. crude rose 2 cents to $61.09 a barrel. Brent crude, the international standard, edged up 3 cents to $65.10 a barrel.

Gold gained 2% to nearly $5,100 an ounce, while silver jumped 6.4% to about $108 per ounce. The value of precious metals has surged in recent months as investors sought relatively safe places to invest.