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News  ›  Benzinga

Yen Weakens To July 2024 Lows, But Japanese Stocks Have Never Been Stronger

Benzinga Logo Benzinga By Piero Cingari
Yen Weakens To July 2024 Lows, But Japanese Stocks Have Never Been Stronger

As the Japanese yen slides to its weakest level since July 2024 amid political uncertainty and speculation of a snap election under Prime Minister Sanae Takaichi, Japanese equities are surging to record highs. Exporters and financials are benefiting from the weaker currency, with the Nikkei 225 futures rallying 3.1% to fresh records. However, economists warn this combination of persistent yen weakness and rising bond yields is historically unusual and potentially unsustainable, with intervention risk increasing if the yen weakens further toward the 162-165 range.

Insights
VYLD   neutral

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EWJ   positive

ETF has risen nearly 5% since the start of the year, outperforming the S&P 500 ETF, benefiting from the yen weakness and record highs in Japanese equities.