Tokyo | Investors are rushing to unwind one of the most lucrative investment strategies in recent years: borrowing a weak Japanese yen at near-zero interest rates to buy high-yielding assets in other markets, such as US tech stocks.
While Friday’s weaker-than-expected US jobs data was the catalyst for the global market meltdown, it wasn’t the only culprit behind the brutal sell-off that sent Japan’s sharemarket tumbling the most since the Black Monday crash in 1987, with Australia’s S&P/ASX200 off more than 3 per cent.
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Jessica Sier is the North Asia Correspondent for The Australian Financial Review. She is based in Tokyo, Japan. Jessica has previously written on technology, global capital markets and economics. Connect with Jessica on Twitter. Email Jessica at jessica.sier@afr.com
