Yen weakens past 162 per dollar as intervention fears cap losses
Asian markets slid on July 7 as South Korea’s KOSPI neared a technical bear market and triggered a second circuit breaker, while traders watched yen weakness, Japan’s long-bond auction and upcoming Fed minutes.
Asian markets sold off on July 7, with South Korea’s KOSPI dropping more than 6% intraday, triggering a second circuit breaker and leaving the benchmark more than 20% below its June peak, near a technical bear market. Japan’s Nikkei 225 closed down 1,480.73 points, or 2.12%, at 68,256.96, while the yen remained on the weaker side of 162 per dollar near 40-year lows as traders monitored possible Japanese intervention, Japan’s 30-year government bond auction and minutes from the Federal Open Market Committee. In South Korea, Samsung Electronics fell about 7% and SK Hynix about 5%-6% as investors reassessed AI-demand prospects despite Samsung reporting a sharp profit surge.
- intervention: Official buying or selling in currency markets by authorities to influence an exchange rate.
- circuit breaker: A trading halt used during extreme market volatility.
- technical bear market: A decline of 20% from a recent peak.