Analysis of Weakening Japanese Yen and China's Market Developments

This chapter discusses the weakening of the Japanese yen against the US dollar and the contributing factors to this decline, including higher US yields, a stronger dollar, and concerns about China's economy. It also mentions Japan's finance minister closely monitoring market trends. The chapter then shifts focus to China, where investment funds have been asked to refrain from being net sellers of Chinese equities. It highlights the recent crisis in the shadow banking industry and the protests that occurred after a trust company missed payments. China's leaders have also expressed their commitment to stimulate domestic consumption and support the private sector. The chapter concludes with a mention of Chinese developer Country Garden warning about uncertainties in the redemption of its bonds and the possibility of default if it doesn't make a bond interest payment within a 30-day grace period.