Stocks resume plunge amid rush for yen safety

by Jonathan Adams

Major Asian stock markets have endured further sharp falls, with Europe tipped to follow, as investors fret over the world economy and the outcome of the UK’s Brexit vote.

Japan’s Nikkei closed 3.1% down in the wake of a rush for the yen – hammering the market values of exporters – after the country’s central bank held off on introducing more economic stimulus despite the recent market turmoil.

The yen, a safe haven for investors in troubled times, has surged to a 21-month high against the US dollar.

It is a scenario that is seen as a huge threat to Japan’s economic recovery because of the country’s reliance on major exporters.

While the Bank of Japan’s decision to leave its massive 80 trillion yen (£540bn) asset-buying plan unchanged this month was of no great surprise, the lack of action contributed to jitters over the wider slowdown in the world economy.

Its core interest rate is in negative territory in a bid to stoke spending and inflation.

This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Related News

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Know more