Trump Urges Japan's Takaichi to Moderate Taiwan Rhetoric, Market Implications Loom

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Citing Bpaynews, Donald Trump reportedly urged Japanese Prime Minister Sanae Takaichi to temper her rhetoric on Taiwan during a private call, aiming to reduce geopolitical tensions. The shift could impact USD/JPY, CNH, and regional equities by potentially lowering headline risk in Asia. Traders are assessing whether the softer tone will reduce safe-haven demand for the yen or merely delay volatility triggers. Japanese equities sensitive to defense spending may face two-way risk, while exporters could benefit from improved risk appetite. The situation highlights how policy signaling influences market volatility in the region.

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