A tech-sector selloff drove flows into traditional havens—yen, Japanese and US
government bonds—pushing the yen to a one-month high. After weeks of tight
trading the yen broke out in the past 24 hours, rising to 156.08 per dollar in
Tokyo trade (up 0.4% intraday) and returning to its Sept. 18 level, the day the
Bank of Japan hiked rates; it had gained 0.9% on Thursday. Asian equities fell
alongside Wall Street. Japan 10-year bond prices jumped, sending yields down
about 10bp; US Treasuries largely held Thursday’s gains. Commonwealth Bank
strategist Carol Kong said investors prefer the yen to the dollar as a safe
haven after US mega-cap earnings dented the AI-driven growth narrative and added
that further tech de-risking could push the yen higher.
