Asian shares mostly dip as the yen rises against the U.S. dollar

TOKYO (AP) — Asian shares mostly declined Monday, as Japan's benchmark took a tumble after the yen surged against the U.S. dollar.

Japan's benchmark Nikkei 225 dropped 1.9% to 52,812.45 on selling of big exporters like Toyota Motor Corp., whose shares fell 3.2%.

A weak currency is generally favorable for Japanese exporters because it helps elevate the value of their overseas earnings. In recent months, the dollar has gained against the yen. It fell sharply in the past few days after officials in both Japan and the U.S. indicated they were prepared to intervene to support the yen.

The dollar slipped to 154.26 Japanese yen from 155.01 yen. It had been trading around 158 yen last week.

The euro rose 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.