Yen and yuan links with stocks get complicated
In an article published on Nikkei Asian Review, Andrew Scott, Head of Flow, Strategy and Solutions, Asia Pacific at Societe Generale discusses the relationship between Asian equity markets and the exchange rates of the currencies.
''If we were to liken the relationship between equity markets and foreign exchange rates to marriage, social media postings would be reading "It's complicated" for China and "Soon to be divorced" for Japan.
There has always been an intrinsic link between Asian equity markets and the exchange rates of the currencies in which stocks are quoted against the dollar -- the base currency for almost 60% of global assets under management. However, the dynamic is shifting rapidly in China and Japan and the evolving relationship status is grabbing the attention of many traders.''
Andrew Scott, Head of Flow, Strategy and Solutions, Asia Pacific at Societe Generale
To read the full article, please visit: www.nikkei.com