Investing.com-- Asian stocks retreated on Wednesday as strength in the yen spurred a further unwinding in the carry trade, while losses in e-commerce major JD.com dragged down Hong Kong’s Hang Seng index.
The Hang Seng was also headed back towards an over three-month low hit earlier in August. Concerns over slowing growth in China had battered sentiment towards local markets.While the yen had weakened over the past week, it appreciated sharply on Monday, with USDJPY hovering around 145 by Wednesday. Jefferies said in a recent note that yen strength presented a weaker earnings outlook for Japanese markets. But the brokerage said persistent strength in the yen presented an overweight stance on Japanese markets, especially those with exposure to domestic demand.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.