Treasury Secretary Bessent&#x27;s G20 push on yen policy and China&#x27;s trade surplus

Speculators Turn Net Long Yen on BOJ Bets

Speculators flipped to 10,796 net long yen contracts, first net long since February, as dollar-yen hit 152.89 on BOJ rate-hike bets.

7 sources

World

Russian finance minister, invited by Trump, draws objections at G-20 meeting

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China exports rebound on high-tech and AI demand

5 sources

China's exports surge while imports miss estimates in August

6 sources

Yen surge disrupts carry trades as investors reassess positions

‘I am the house now’: Bessent warns currency traders not to bet against yen

Bessent Signals End of Abenomics in Push With BOJ

Japan Wages Rise 4.7%, Fastest Since 1997

Japan’s July wages surged, with real wages up 2.4% year-on-year—the seventh straight monthly gain and the strongest since May 2021—while nominal cash earnings rose 4.7% to about ¥436,401, the fastest since January 1997. The data, led by a 4.1% jump in base pay and 6.3% in special payments, alongside a 2.2% inflation rate, strengthens the case for a BOJ rate hike next meeting and is shaping market expectations for the yen and equities, with broader implications discussed for global markets including tech firms like SMCI.

8 sources

World

Japan's record reserve plunge after yen intervention raises Treasury questions

Japan's August foreign exchange reserves dropped a record $79.6 billion to about $1.208 trillion as the government stepped in to defend the yen, with an August intervention tally of about 15.4 trillion yen. Officials largely funded the move by selling foreign securities, predominantly U.S. Treasuries, fueling market concerns about Treasury supply and prompting analysts to consider strategies for yen-driven volatility.

11 sources

World

Bessent urges G20 to curb China's trillion-dollar surplus

U.S. Treasury Secretary Scott Bessent urged the G20 to reevaluate trade terms with China to curb its $1.2 trillion export surplus and push Beijing toward domestic consumption, arguing that current export-driven growth strains the global economy. He advocates multilateral policy tools—such as adjusting import duties, export credits, and investment screening—to coordinate a shift away from China’s export-led model, noting how Europe and Latin America have already absorbed redirected shipments as a result of U.S. tariffs and bans.

60 sources

BOJ Rate Hike Bets as Budgets Push Yields Higher

Japanese government bond yields surged to multi-decade highs as markets price further Bank of Japan rate hikes, widening gaps with U.S. yields and fueling yen weakness despite record budget demands; the higher rates and carry trades are also impacting cryptocurrency markets, including Bitcoin. Investors eye broadened fiscal pressures and global rate dynamics as the BOJ’s path remains uncertain and U.S. yields climb.

130 sources