Asian Markets Mixed; Nikkei Falls as Yen Strengthens on Intervention Fears

Asian equity markets were mixed in cautious trading on Monday, January 26, 2026, with Japan's Nikkei 225 index declining sharply. The sell-off was driven by a surging Japanese yen, which strengthened on heightened speculation that Japanese authorities might intervene in currency markets to support it. The Nikkei 225 fell over 1.5% as the yen's appreciation pressures export-oriented companies. Other regional benchmarks showed limited movement as investors awaited key central bank policy decisions and economic data due later in the week. The yen's move reflects market sensitivity to potential official action after its prolonged weakness.