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. The stock market was already under pressure, having dived more than 15 percent since the turn of the year on worries about the Thai economy.

Stock markets in Europe have fallen in early trading, following on from steep falls on some Asian markets overnight ahead of Trump tariffs coming into effect this week; Japan's Ni