TLDR interest rates there being so low for so long means it where the investing world goes to borrow currency to invest it in other nations stocks with higher rates and therefore higher returns. Which if things stay stable, means you can easily repay the loan in japan and keep the cream on top. Easy money... until things dont stay stable. And then the investor hoping for an easy profit ride eats the losses, and perhaps cant repay the loans which is why the banks in Japan are particularly hard hit right now in the market as it turns out loans people took might not easily or promptly be repaid.
One of the stories I read this morning said that a lot of this has to do with the fear the United States is going into a recession with the week jobs numbers last week that it's actually the United States that is creating the global stock market meltdown the problem is you just don't know what to believe
Likely, since it seemed to start with US jobs numbers as you say on late friday - gee I wonder why they wait to that time of the week for any news thats bad, right?
Unfortunately the intertwined nature of finance means that any perceived contagions will loop around the worlds stock markets once if not at least a couple times before things settle down, even for the mildest problems.
Just watched 'Japan JUST Crashed the GLOBAL Stock Market.' which seems to be a pretty trending topic right now.
https://www.youtube.com/watch?v=mCp0LJzNN1M
TLDR interest rates there being so low for so long means it where the investing world goes to borrow currency to invest it in other nations stocks with higher rates and therefore higher returns. Which if things stay stable, means you can easily repay the loan in japan and keep the cream on top. Easy money... until things dont stay stable. And then the investor hoping for an easy profit ride eats the losses, and perhaps cant repay the loans which is why the banks in Japan are particularly hard hit right now in the market as it turns out loans people took might not easily or promptly be repaid.
One of the stories I read this morning said that a lot of this has to do with the fear the United States is going into a recession with the week jobs numbers last week that it's actually the United States that is creating the global stock market meltdown the problem is you just don't know what to believe
Likely, since it seemed to start with US jobs numbers as you say on late friday - gee I wonder why they wait to that time of the week for any news thats bad, right?
Unfortunately the intertwined nature of finance means that any perceived contagions will loop around the worlds stock markets once if not at least a couple times before things settle down, even for the mildest problems.