Japanese shares ended lower on Tuesday as risk appetite waned after U.S. President Donald Trump's remarks on Greenland revived concerns about renewed trade frictions with Europe, weighing on sentiment.
The Nikkei 225 fell 1.11%, or 592.47 points, to close at 52,991.10.
Trump renewed his push to take over Greenland, saying he expected limited resistance from the European Union, despite firm opposition from EU leaders.
Speaking in Florida late Monday, Trump reiterated the strategic need for Greenland and said he did not think European leaders would push back strongly. His comments follow earlier remarks linking his interest in the Danish territory to missing out on the Nobel Peace Prize, which he later dismissed.
Trump also said the U.S. economy was the world's strongest ahead of his trip to the World Economic Forum in Davos, citing rising investment and buoyant stock markets.
In economic news, The International Monetary Fund lifted its forecast for Japan's 2026 growth to 0.7% from 0.1%, citing the impact of new government spending.
Growth is still seen slowing from an expected 1.1% in 2025. The IMF projects 0.6% growth in 2027, up from a flat outlook, and expects gradual Bank of Japan rate increases alongside near-term fiscal support, with inflation easing toward target by 2027.
on the corporate front, Findex (TYO:3649), which ended 1.7% lower, said medical software adoption rose at end-December, with Claio users at 1,719, DocuMaker at 755, C-Scan at 182 and the Remora electronic medical record system at 975.
Komehyo Holdings (TYO:2780), which jumped 4.5%, said December sales in its brand and fashion business rose 45% to 21.72 billion yen, lifting April-December sales 42% to 152.32 billion yen. Individual purchase amounts climbed 44% to 9.91 billion yen, supported by firm domestic and overseas demand and higher gold prices.
