(Bloomberg) — Chaos erupted in Japan’s financial markets on Monday as the yen surged against the dollar by approximately 13% from its low in July, pushing stocks into a bear market. The yields on Japan’s government bonds experienced their largest decline in over twenty years.
Top Stories from Bloomberg
These unexpected and rapid movements caught investors off guard, impacting a wide range of market participants from individual traders to large financial institutions. The drop in bond yields led to significant losses in the shares of Japan’s three largest banks, erasing $85 billion in market value over the past two trading days, as concerns grew about the impact on interest income.
The significant strengthening of the yen, following the Bank of Japan’s interest rate hike on July 31, sent shockwaves through global markets, disrupting numerous investment strategies that relied on low-cost yen borrowing. It’s a disappointing turn of events…
2024-08-05 04:49:43
Source: finance.yahoo.com