To The Moon

🔻The $SGX Nikkei 225 - Mar 2026(NK2603)$ index is trading 0.5% lower to 52,380 this morning, after following China's imposition of new export restrictions to Japan for items with potential military use

💫The Nikkei225 is currently trading close to its 31 Oct 2025 all-time record high, after rallying 4% in the first three trading days of the new year

✳Trending N225 call warrant $NKY 59000MBeCW260612(V3XW.SI)$ (https://warrants.com.sg/tools/livematrix/V3XW) is up 6 times more than the Nikkei225 i.e. 26.4% year to date to SGD 0.091 as of 950AM this morning

✴Trending N225 put warrant $NKY 47000MBePW260612(FRDW.SI)$ (https://warrants.com.sg/tools/livematrix/FRDW) is down 20% to SGD 0.112 year to date

🚫The escalating tensions between Japan and China however, may be providing fresh headwinds for the Nikkei225 as China banned more than 800 items, ranging from chemicals, electronics and sensors to equipment and technologies used in shipping and aerospace, from being exported to Japan for military use effective immediately (Bloomberg)

⛩According to Bloomberg, Japan's reliance on China for rare earths has fallen to about 58% from 85% in 2009, helped by diversification efforts including seabed mining near Minamitori Island, where US-Japan test mining is scheduled to begin this month.

🥊Still, markets are bracing for potential spillovers if frictions intensify between Japan and China - its largest trading partner

💡Investors nervous about a further pullback in the Nikkei225 can consider hedging with put warrants in the short-term