Unexpected changes! The Japanese stock market plunges, is carry trade disturbance happening again?
This afternoon, the Japanese stock market suddenly plunged, with the Japanese TOPIX index falling by more than 1%. At the same time, the South Korean stock market also saw a larger decline in the afternoon, with the Indian stock indices Nifty and Sensex both falling by 1%. This indicates that the shipping index for peripheral demand, represented by European futures, has also experienced a sharp drop of over 10%. It is worth mentioning that there has also been a significant dive in the USD/JPY exchange rate. So, what exactly happened?
[Daily Japanese Stock Review] Is disaster looming? The Nikkei 225 has fallen for 4 consecutive days, and the non-farm payroll data could potentially ignite the market.
FX168 Financial News Agency (Asia Pacific) reported that the Japanese stock market fell for the fourth consecutive trading day on Friday, September 6th, due to the upcoming release of key non-farm employment data in the USA, while the strengthening of the Japanese yen has dampened market sentiment.
Unfazed by the possibility of a 'Black Monday' repeat? Former officials from the Bank of Japan predict that there may be two more interest rate hikes this year.
Tsutomu Watanabe, a former official of the Bank of Japan and one of Japan's leading experts on inflation, has stated that the pace of interest rate hikes in Japan may be faster than expected. There may be two more rate hikes this year. He suggests that the Bank of Japan should be more proactive in communicating its view on the interest rate path.
Express News | Former Bank of Japan official: The pace of interest rate hikes may be faster than market expectations.
Global stock markets have dumped 2 trillion US dollars, and the bigger storm is still ahead.
On Thursday (September 5), global stock markets stabilized after several days of decline. Previously, September started poorly, and the yen rose to a one-month high. The government bond market performed strongly amid investor bets on interest rate cuts. However, due to ongoing uncertainty about the health of the US economy and the pace of possible interest rate cuts by the Federal Reserve, market sentiment remains cautious.
Decision Analysis: Big trouble! Two sets of data make a huge change in the Fed's interest rate cuts, and yen buying interest surges.
On Thursday (September 5th), Asian stock markets performed poorly. The Japanese stock market fell to a three-week low as investors sought safe havens, pushing the yen to a one-month high. At the same time, concerns about the US economy have raised prospects for a Fed rate cut.