China, Japan
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Why the Japanese yen trading back toward its lows for the year could be important for markets
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.
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.
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.
U.S. Treasury yields were a touch lower in early action as traders braced for potential spillover from another weak Japanese auction of government bonds. Yields in the Treasury mar
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.
China and Japan are two of Asia’s most powerful nations and the region’s biggest trading partners. Yet centuries of intense rivalry mean their economic embrace can never be taken for granted.
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