- As traders increased their wagers that the Bank of Japan's negative interest rate policy is about to expire, the value of the yen increased.
- Japan's yen rose for a second day, reaching a high of 1.1% on very thin liquidity before retreating again. The nation's bonds and stocks fell as a result of the advance. Following the Nasdaq 100 index's surge and renewed optimism over artificial intelligence, shares in Taiwan and South Korea increased.
- According to Ayako Sera, a market strategist at Sumitomo Mitsui Trust Bank, "it's inevitable that Japanese stocks fall because of the yen appreciation because of the quite dramatic exchange rate fluctuations." "The decline in stocks is probably going to be limited to some extent because a strong yen is not bad for all Japanese companies."
- In the meantime, traders will be watching for any clarification from BoJ Governor Kazuo Ueda over remarks he made to lawmakers about how his work will become more difficult by year's end. This is likely to stoke speculation that the central bank would soon begin raising its benchmark rate, which is now set at zero. As wagers against the currency collapsed, the yen rose to its highest level since August.
