Japan's stock market is hitting new highs due to strong fiscal flows from government spending, current account surplus, and rising bank credit creation. Government spending at over 4% of GDP, a positive current account balance, and increasing bank credit creation are driving aggregate demand and asset market growth.

Global stock markets were a sea of red Monday and investors fled to gold ahead of a wave of US tariffs this week that have fuelled recession fears.

Stock markets in Europe and Asia also fell, after Trump warned all countries could be hit with tariffs on US imports.