Political Uncertainty in Japan Shakes Global Markets

Asian shares declined largely on Wednesday, mirroring a downturn on Wall Street, as political turbulence in Japan triggered cautious trading on the Tokyo Stock Exchange. In afternoon trading, Japan's benchmark Nikkei 225 shed nearly 1%, landing at 41,894.70.

The political landscape in Japan is uncertain with Prime Minister Shigeru Ishiba facing calls to both resign and remain, following a recent electoral setback and the emergence of fringe parties that have shaken confidence in the ruling Liberal Democratic Party. Further destabilizing was Hiroshi Moriyama's resignation as party secretary-general, a key ally to Prime Minister Ishiba.

Global markets echoed this uncertainty. The S&P 500 had its worst day in a month, driven down by Big Tech declines and pressure from rising bond yields. Additional strain was seen as a U.S. appeals court maintained tariffs imposed by President Trump, fanning economic chaos. Meanwhile, gold prices increased as investors sought stability amidst financial turbulence.

(With inputs from agencies.)