The Japanese yen has slumped to a 10-month low — and it’s getting to a point where Japanese authorities may have to act. In his daily research note, market strategist David Rosenberg predicted the Bank of Japan is on the cusp of having to change policy to stabilize its currency.

Japan’s longer-maturity sovereign bonds fell sharply on Monday over renewed fiscal concerns ahead of the government’s first economic package expected to be unveiled as soon as this week.

Conditions are ripe for a strong rally in the 'safe haven' Japanese yen, with a global stock market selloff sparking volatility across asset classes. But the Japanese currency is falling fast, calling into question its long-perceived role as a preferred hiding spot for spooked investors.

Beijing is flexing its military and economic might to show its displeasure with the Japanese leader’s comments about defending Taiwan. But its aggressive approach risks backfiring.

An opening attempt to cool tensions between China and Japan appears to have fallen flat, signaling that the diplomatic spat is likely to drag on and stoking concerns about further strain in economic ties.

Japan has warned its citizens in China to step up safety precautions and avoid crowded places, amid a deepening dispute between Asia's two largest economies over Japanese Prime Minister Sanae Takaichi's comments on Taiwan.

Shares in Japan’s tourism-related companies fell sharply after China called on its citizens to avoid traveling to the country.

Tensions spiraled on Nov. 8, when Takaichi said that a Chinese attempt to seize Taiwan by force would constitute a "survival-threatening situation" for Japan.